Bisq to Reimburse Users After Likely AI-Assisted 11 BTC Drain

On May 1, Bisq disclosed that an exploit of its v1 trade protocol had drained roughly 11 BTC from open altcoin offers. The project published a follow-up on May 3 that estimated the loss at about 11 BTC based on data analysis and user reports and said the figures are preliminary.

The exploit targeted open offers on the decentralized peer-to-peer exchange rather than a centralized wallet. Bisq is collecting user reports and transaction data to refine the total loss estimate and to support reimbursements.

On May 3, Bisq maintainer Henrik Jannsen posted a reimbursement framework on GitHub and wrote, “fast, full reimbursement with as little friction as possible for affected users.” The proposal outlines how eligible users can claim losses.

Under the plan, affected users must open arbitration cases through Bisq’s protocol. Arbitration only becomes available after trade time locks expire: 10 days for altcoin trades and 20 days for fiat trades. That timing means some claims cannot begin immediately.

Reimbursements require approval in a DAO vote. The current governance cycle is expected to conclude around May 25, when a formal proposal should be put to a vote. Bisq noted that altcoin arbitration windows begin opening May 11 as time locks expire and users become eligible to file claims.

Jannsen wrote the project prefers to reimburse in Bitcoin, while recipients may opt for BSQ, Bisq’s governance token, noting the preference aims to limit volatility for victims.

Some users raised concerns in project threads. One seller warned that converting BSQ back into Bitcoin at scale would cause slippage and additional losses. Another requested a clearer timeline for when payments would be made.

Bisq flagged the incident as a likely example of AI-assisted exploitation but did not disclose technical details about how AI may have been used. The project noted automated tools and machine-learning models are being used more frequently to find protocol weaknesses.

For now, users who suspect they were affected are asked to open arbitration cases once time locks expire and to monitor the DAO voting cycle. The project wrote it will update the community as investigations and the governance process progress.