Microbial degradation of aflatoxins (AFs) is an alternative to the use of mycotoxin binders. The lactone ring is a possible target for microbial enzymes and its cleavage reduces AFs toxicity. The aim of this study was to isolate and identify Bacillus strains able to degrade AFB1 to less toxic metabolites and to identify aiiA genes encoding for N-acyl-homoserine lactone (AHL) lactonase to possibly correlate detoxification with the production of this enzyme. Eleven soilborne Bacillus strains were isolated and identified by MALDI-TOF MS. Ten cultures and eight cell free culture supernatants (CFCS) were able to significantly (P < 0.05) degrade 27.78–79.78% AFB1. Cell lysates were also able to degrade AFB1 (P < 0.05). Exposure to 70 and 80 °C did not affect enzyme activity. Aflatoxin B1 toxicity towards Artemia salina was reduced after degradation by each of the Bacillus strains. B. subtilis RC1B, B. cereus RC1C and B. mojavensis RC3B, amplified a fragment of 753 pb corresponding to the aiiA gene encoding for AHL lactonase. AFB1 degradation by the strains tested was due to the extracellular and intracellular enzymes. If demonstrated to be safe, these could be used to detoxify AFB1 in contaminated food or feed. •Bacillus strains isolated from soil and pond mud degraded AFB1.•aiiA genes encoding for N-acyl-homoserine lactone (AHL) lactonase were present in 3 of the strains.•The degradation activity of Bacillus strains was due to the extracellular as well as intracellular enzymes.