The Balancer protocol has suffered a devastating exploit, with hackers draining more than $128 million in assets from its liquidity 0 security firm PeckShield was the first to identify the attack, reporting a series of suspicious multi-chain transactions that point to a coordinated 1 to Etherscan data, multiple large transfers occurred from Balancer’s main wallet to an external 2 withdrawn assets included: 6,587 WETH (~$24.5 million) 6,851 osETH (~$26.9 million) 4,260 wstETH (~$19.3 million) The combined volume suggested a compromise in the protocol’s smart contract or pool storage 3 after reports emerged, the Balancer team confirmed that the project had been hit by a potential 4 Ohtamaa, CEO of Trading Strategy, suggested that the exploit might stem from a verification error in Balancer’s smart contract 5 noted that while not all versions appear affected, if the flaw exists in older v2 forks, total damages could exceed $110 million.
Meanwhile, PeckShield reported that the attack remains active across multiple blockchains where Balancer 6 said the scope of the breach has already surpassed early estimates, with funds continuing to flow out of compromised 7 latest data now shows total losses surpassing $128 million. Balancer, launched in 2020, operates as a decentralized exchange (DEX) and automated portfolio manager built on 8 allows users to trade tokens and supply liquidity to automatically balancing pools — a core mechanism of decentralized 9 estimate that Balancer manages over $350 million in total assets on Ethereum alone. However, following confirmation of the exploit, the BAL token dropped over 4%, reflecting market fears about liquidity loss and recurring DeFi 10 breach adds to a growing list of DeFi protocol hacks in 2025, further undermining investor confidence in smart contract 11 context, the Bunni exchange recently ceased operations after a similar exploit, highlighting the persistent security risks haunting decentralized finance.
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