Bitcoin-native asset trading protocol DotSwap disclosed a security incident on October 25 in which attackers exploited a legacy server-side signing path in its original V1 swap platform to steal approximately 8.5 BTC, worth around $685,000. The theft occurred over roughly four hours, draining funds from V1 liquidity pools and V1 accounts. Because V1 held pool liquidity in a custodial multisig arrangement, the losses fall on BTC liquidity providers who deposited into V1 pools, with all V1 deposits affected. Trading users' self-custody wallets were not impacted. The V1 platform, launched in 2024, had already been slated for retirement following a full migration to the Nexus protocol and is now offline. DotSwap stated it is tracing the stolen funds in coordination with exchanges and analytics partners and plans to publish a full post-mortem of the incident.