|
Getting your Trinity Audio player ready...
|
- Over $116M stolen from Balancer v2 pools in a major exploit.
- Balancer offers a 20% white hat bounty for the return of funds.
- Berachain halts network amid efforts to recover affected assets.
The decentralized exchange (DEX) Balancer has fallen victim to a major exploit that drained more than $116 million in digital assets, marking one of the largest decentralized finance (DeFi) hacks of 2025.
Balancer Confirms Ongoing Investigation
Balancer confirmed on X that its v2 pools were compromised and that its engineering and security teams are investigating the issue “with high priority.” Early blockchain data revealed that attackers siphoned millions in liquid staked Ether (ETH) tokens across several transactions.
Crypto analytics firm Nansen reported that the stolen tokens included 6,850 OSETH, 6,590 WETH, and 4,260 wSTETH, initially totaling $70.9 million before swelling to over $116.6 million, according to Lookonchain.
Smart Contract Vulnerability Suspected
Preliminary analysis suggests the exploit may have originated from a faulty access control in one of Balancer’s smart contracts. This flaw allowed the attacker to issue withdrawal commands and drain funds from affected pools.
Nansen analyst Nicolai Sondergaard noted that “losses now exceed $100 million and have affected Balancer v2 and several forks,” underscoring the widespread impact.
Balancer Offers 20% White Hat Bounty
In a move to recover stolen funds, Balancer has offered a 20% white hat bounty to the attacker if the assets are returned immediately. If not returned within 48 hours, the team plans to work with law enforcement and blockchain forensics to trace the perpetrator using IP and transaction data.
Balancer also warned that its infrastructure logs can identify the attacker’s access metadata, signaling a proactive and confident pursuit of justice.
This isn’t Balancer’s first encounter with security incidents. In 2023, the protocol lost $1 million in a stablecoin exploit, and in 2020, it suffered a $500,000 flash loan attack. A prior DNS hijack also redirected users to phishing sites, resulting in $238,000 in losses.
Following the latest breach, Berachain validators temporarily halted their network to perform a hard fork, ensuring affected funds on their DEX could be recovered.
The Balancer exploit highlights ongoing vulnerabilities in DeFi infrastructure, where open-source code and complex integrations still expose users to massive risks. While Balancer’s swift response and bounty offer reflect growing maturity in crisis handling, it also serves as a sobering reminder: in decentralized finance, security remains the weakest link.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Tea-Fi Redefines DeFi: One SuperApp. Infinite Yield. Powered by $TEA
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
