Non-custodial cryptocurrency exchange, Bisq has announced that it will temporarily halt trading service on its platform following a newly discovered security vulnerability.
Based on the development, the exchange has notified its users not to proceed with any existing transaction or send funds to any party as it could result in a loss.
The temporary halt in trading service does not stop users from overriding the key responsible for this action. However, Bisq does not support the idea as it could hamper users’ security.
“Bisq is a proper distributed peer-to-peer network. So you can override the latest alert key functionality that blocks trading. But we highly discourage you from doing this for your own security,” the exchange operators added in a thread announcing the halt.
Despite the “critical security vulnerability” on the exchange, Bisq has told users not to panic as their funds are safe due to its existing security model, which is not affected by the breach.
The exchange is currently working round the clock to resolve the issue with no update reported at press time. It added that trading service would remain blocked until its developers release the v1.3.0 hotfix update, which is expected to eliminate any security concern.
Notably, the exchange is expected to provide detailed information about the issue “within a few hours,” the exchange added.
A Quick One on Bisq
Bisq is an open-source exchange that allows users to buy, sell, and trade Bitcoin (BTC) using fiat currencies.
There is no limit to the number of daily transactions on the platform. However, the maximum amount of trade size is 0.25 BTC for most bank-based payment methods like SEPA. In contrast, for transactions involving other payment services like PerfectMoney and AliPay, the maximum transaction amount is 1 BTC.
Meanwhile, both centralized and decentralized cryptocurrency exchanges have faced several security challenges in the past, which has led to many exchanges temporarily halting trading service or permanently winding up after some time.
Last year, Coinfomania reviewed the top five infamous crypto exchanges security failures with millions of dollars lost in the heist.