Balancer Suffers $128 Million DeFi Exploit
- Balancer suffers significant exploit, leading to major fund withdrawal.
- Loss impacted by $128 million, affecting multiple chains.
- Immediate market volatility observed following incident revelation.
A $128 million exploit hit Balancer in November 2025, exposing a smart contract vulnerability across multiple chains, significantly impacting the decentralized finance ecosystem.
This incident signals ongoing security challenges in DeFi, causing panic withdrawals and asset volatility, while highlighting vulnerabilities in multi-chain smart contract deployments.
Balancer lost over $128 million in a DeFi exploit on v2 contracts, November 2025.
This loss reflects vulnerabilities in DeFi, impacting the Balancer ecosystem and causing market unrest.
Balancer Loses $128 Million in Exploit
The major exploit impacted Balancer’s v2 smart contracts, leading to a loss exceeding $128 million across multiple chains in November 2025. This incident follows ongoing DeFi security concerns.
Involved parties include the Balancer core team and PeckShield, a blockchain security firm. They quickly identified and announced the exploit via social media platforms.
BAL Token Drops as Market Reacts
Crypto markets reacted immediately, with Balancer’s BAL token dropping ~4%. This incident highlighted the challenges DeFi protocols face in maintaining trust and security.
Financial implications include $128 million in unauthorized withdrawals, affecting digital assets like WETH and osETH. This event underscores the need for enhanced security in DeFi.
Exploits Highlight DeFi Vulnerabilities
This exploit is reminiscent of the Bunni DEX hack earlier in 2025, emphasizing recurrent vulnerabilities in DeFi smart contracts. Both incidents highlighted significant security concerns.
Future outcomes depend on improved security measures. Experts suggest thorough audits and systematic checks for smart contract vulnerabilities to prevent similar losses.
Mikko Ohtamaa, CEO, Trading Strategy, “The exploit might stem from a verification error in Balancer’s smart contract logic. While not all versions appear affected, if the flaw exists in older v2 forks, total damages could exceed $110 million”.
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