DotSwap V1 was attacked, losing approximately 8.5 BTC worth around $685,000.

On October 27, Bitcoin-native decentralized liquidity layer (N) On Nexus tweeted that its legacy trading platform, DotSwap V1, was attacked. The attacker exploited a legacy server-side signing mechanism to drain approximately 8.5 BTC, worth around $685,000, from V1 liquidity pools and accounts within about four hours.

Since V1 liquidity employs a custodial multi-signature mechanism, the losses involve the BTC deposited by liquidity providers, meaning all V1 deposits were compromised, though self-custodied wallets of trading users remain unaffected. The platform has now disabled V1 and is actively tracing the funds, contacting exchanges, and collaborating with on-chain analytics partners. A comprehensive investigation report and user resolution plan will be released subsequently.