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- Berachain recovered all $12.8M stolen from Balancer V2 via emergency hard fork and white-hat cooperation.
- Quick blockchain pause prevented further losses and protected user funds.
- Incident highlights the balance between decentralization and security in DeFi protocols.
Berachain, an Ethereum-compatible Layer 1 blockchain, has successfully recovered approximately $12.8 million lost in the recent Balancer protocol exploit. This rare full restitution highlights how rapid coordination and ethical cooperation can protect decentralized finance (DeFi) ecosystems.
The Balancer hack, which occurred on November 3, drained over $117 million across multiple blockchains, including Ethereum, Arbitrum, Optimism, Polygon, and Berachain itself. Berachain’s swift emergency response and collaboration with a white-hat hacker were crucial in returning the stolen funds to the foundation’s deployer wallet.
We are happy to confirm that all funds (approx $12.8m) from the BEX / Balancer v2 exploit have been returned to the Berachain Foundation Deployer (https://t.co/HjCONAGpOZ). Chain is live.
— Berachain Foundation 🐻⛓ (@berachain) November 4, 2025
We'd like to thank the white hat who worked with us to make this happen – we'll ensure that…
Emergency Pause and Hard Fork Prevented Further Losses
In response to the exploit, Berachain temporarily halted all swaps, deposits, and withdrawals. This emergency pause allowed developers to investigate the vulnerability in the Balancer V2 protocol and prevent additional losses.
Berachain’s Chief Smokey Officer, Smokey The Bera, explained the decision, stating that safeguarding approximately $12 million in user funds justified the controversial blockchain pause. Following the investigation, validators executed an emergency hard fork, freezing the attacker’s wallet and facilitating full recovery.
Industry-Wide Implications of the Balancer Hack
The Balancer exploit has reignited discussions about the limits of security in composable DeFi architectures. StakeWise, another platform affected by the hack, recovered nearly $20 million through coordinated action. These events underscore the importance of swift response strategies and highlight how ethical actors can play a critical role in crisis management.
The incident also sparked debate in the crypto community about the balance between decentralization and security. While some critics argue that halting a blockchain undermines decentralization, others emphasize the necessity of protecting users’ assets during emergencies.
Also Read: Berachain Pauses Network to Shield $12M in User Funds After Massive Hack
Market and Ecosystem Impact
Following the recovery, Berachain (BERA) price stabilized at $1.55, regaining investor confidence after a temporary drop of over 10%. This recovery coincided with recent funding of $110 million for the BERA ecosystem, reinforcing market optimism.
Berachain’s response demonstrates the potential for DeFi protocols to navigate crises effectively. Transparency, rapid decision-making, and ethical cooperation have restored trust and sent a strong signal to the broader crypto industry about the resilience of well-coordinated networks.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
