Decentralized Bitcoin exchange Bisq announced that there was a loss of approximately 11 BTC after a security vulnerability announced at the beginning of May 2026. The platform, known for its privacy-oriented structure, supports peer-to-peer exchanges between users and does not use any central intermediary. In the latest incident, it was reported that the exchange’s v1 trading protocol was exploited to withdraw Bitcoin from open bids.
Details of the violation and initial findings
In its first statement on Friday last week, Bisq stated that an exploit was detected that allowed an attacker to withdraw funds from some of the open offers. In the update shared on May 3, it was confirmed that approximately 11 BTC in total were stolen. While only altcoin transactions were affected by the incident, it was stated that more users are expected to report to the system for the figure to be finalized.
Bisq suggested that this exploit was most likely carried out using artificial intelligence-supported techniques. However, details about exactly what role AI played in the vulnerability were not shared. A study published by Binance in 2026 found that artificial intelligence-supported attacks are twice as effective as detecting smart contract vulnerabilities, while the cost of such attacks decreases by approximately 22 percent every two months.
In the update of the project, it was stated that “It seems that we are facing an increasing trend of AI-supported attacks. We think that AI has an impact in this case as well.”
In addition, it is stated that artificial intelligence-powered fraud methods attract approximately 4.5 times more funds than traditional methods, and identity impersonation cases have increased by 1400 percent compared to last year.
Return plan and user processes
Henrik Jannsen, one of the developers of Bisq, shared on GitHub that they are working on a refund plan that will fully compensate the grievances of damaged users with the least amount of trouble. In order for users to get their crypto assets back, they are first asked to apply for arbitration via the Bisq protocol. This interval is stated as 10 days for altcoin transactions and 20 days for fiat currency transactions. After these periods expire, the arbitration process can be initiated.
Additionally, a vote will be held at Bisq DAO to implement the return proposal. The voting cycle is expected to be completed approximately May 25. During this process, it was stated that users can receive compensation in Bitcoin or BSQ, Bisq’s local governance token.
In the statement made by Henrik Jannsen, the following was stated: “Our aim is to compensate users with Bitcoin as soon as possible; BSQ will also be offered as an option for those who want it. Thus, it is aimed to prevent grievances caused by price volatility.”
Despite this, some users have raised concerns about payments via BSQ on X. One user criticized, “Users who have to collectively convert BSQ to BTC may experience price loss.” Another user raised questions about how long the compensation process will take.
New approaches against artificial intelligence attacks
It is stated that the attack in question draws attention to the security vulnerability caused by artificial intelligence in the decentralized finance (DeFi) ecosystem. A recent test by a16z crypto found that next-generation AI coders achieved success rates of up to 70 percent in past price manipulation incidents on Ethereum. According to the research, the fact that AI is being used more effectively by attackers every day makes it necessary to take new precautions.
In the case of Bisq, the next step users need to take begins with the arbitration windows that will open on May 11. It is aimed to complete the process completely by the beginning of June. The next big date is the vote to be held by the Bisq DAO on May 25th.
