⇓ Balancer: A Vulnerability Analysis in the Wake of a $128M Hack

Balancer, a DeFi protocol, has suffered a devastating and extensive cyberattack leading to an alarming loss of over $128 million across several Ethereum chains. The sheer magnitude of the breach is noted as one of the most substantial DeFi exploits in 2025. Berachain network, which was considerably impacted, has consequently been prompted to halt operations and enforce an 'Emergency Hard Fork'. A subsequent reset of its binary system geared towards addressing the Balancer V2 exploit has also been noted. Intriguingly, the infamous breach event has occurred despite Balancer undergoing multiple audits in the past.

A post-mortem analysis on the significant exploit revealed that a flaw in the Smart Contract (V2) was the led to the cyber heist. Despite the dismal situation, StakeWise managed to retrieve a portion of stolen assets amounting to $21 million using a loophole, thereby triggering hopes for ETH price boost. Unsettling news of this exploit has sparked debates across the crypto community on the trust implications of DeFi.

Subsequent developments show Berachain being able to recover $12.8 million following the shocking protocol exploit. Despite professional audits, the significant loss raises concerns over the relevance and effectiveness of such preventive actions. In response to the broad-scale security vulnerabilities revealed, Balancer has launched a full-scale investigation into the V2 vulnerability that led to its substantial losses.

Balancer News Analytics from Wed, 15 Oct 2025 07:00:00 GMT to Wed, 05 Nov 2025 21:53:09 GMT - Rating -8 - Innovation 0 - Information 3