Bisq Confirms 11 BTC Loss in AI-Powered Exploit, Proposes DAO Reimbursements

Decentralized exchange Bisq has confirmed an exploit in its v1 trade protocol drained roughly 11 BTC, initially estimated from the May 1, 2026 incident and verified on May 3, affecting open altcoin offers via suspected AI-enhanced attacks. The platform proposed a full reimbursement plan in Bitcoin or BSQ governance token, requiring affected users to file arbitration claims after time locks expire (10 days for altcoin trades, 20 days for fiat) and DAO approval in a vote around May 25, with resolution eyed for early June. This highlights escalating AI-driven risks in DeFi, potentially boosting short-term volatility and security scrutiny for P2P platforms.