DotSwap V1 Suffers Attack, Losing Approximately 8.5 BTC, Involving Funds of About $685,000

October 27 - On Nexus stated in a post that on October 25, its legacy trading platform DotSwap V1 was attacked. The attacker exploited the server-side signature mechanism left over from V1 to steal approximately 8.5 BTC, worth about $685,000, from V1 liquidity pools and accounts within about 4 hours.

V1 used custodial multi-signature management for liquidity pools, so the losses involved BTC deposited by liquidity providers into V1 pools, and all V1 deposits were affected; trading users' self-custodied wallets were not affected. The attack was launched via automated scripts, with the attacker probing all interfaces and gradually carrying out fund theft targeting 99 Runes tokens.

On Nexus believes this incident fits the recent trend of AI agent-driven attacks. Currently, DotSwap V1 has been taken offline. The team is tracking the stolen funds and collaborating with exchanges and on-chain analysis partners, and will subsequently publish a full incident review and user handling plan. The team also stated that it is working to restore Nexus-related services.