Balancer, a prominent decentralized finance (DeFi) protocol, has experienced a significant security breach, becoming one of the largest exploits in the sector for 2025. According to blockchain analytics firm Nansen, approximately $70.9 million in assets was transferred to a new wallet following the attack. The tokens involved included 6,850 OSETH, 6,590 WETH, and 4,260 wSTETH.
As investigations continue, blockchain security firm Peckshield reported that total losses related to the breach have now reached roughly $128.64 million across multiple blockchain networks. The most substantial losses occurred on the Ethereum network, totaling $99 million. Other affected platforms include Berachain with $12.86 million, Arbitrum at $6.86 million, Base suffering $3.9 million, Sonic with $3.44 million, Optimism at $1.58 million, and Polygon with losses of $232,000.
Investigation Underway as Users Urged to Act
In a concerning development, the blockchain analysis platform Lookonchain reported that a previously inactive wallet suddenly became active following the breach. The holder of this wallet withdrew around $6.5 million in assets amid the ongoing security crisis. In light of these developments, Lookonchain has advised users with remaining funds on Balancer to take precautions to secure their assets.
The Balancer team has acknowledged the exploit affecting its v2 pools and stated that its engineering and security teams are treating the situation as a high priority. The protocol has committed to providing verified updates and guidance as more information becomes available. In a public message, Balancer confirmed, “We’re aware of a potential exploit impacting Balancer v2 pools. Our engineering and security teams are investigating with high priority. We’ll share verified updates and next steps as soon as we have more information.”
Investor Ted Pillows emphasized caution, urging users to refrain from interacting with the affected pools until the issue is resolved.
Previous Breaches and Market Impact
This incident marks the largest hack Balancer has faced to date, overshadowing previous breaches. Notably, in 2020, hackers manipulated token balances through repeated swaps, draining approximately $500,000 from the protocol. Another breach in 2023 resulted in losses of around $900,000 linked to Balancer’s boosted pools.
The latest attack underscores the ongoing vulnerabilities within DeFi platforms, despite increasing oversight and advancements in security measures. Following the news of the exploit, Balancer’s governance token, BAL, experienced a significant decline, dropping over 8% in value within the past 24 hours, settling around $0.91.
As the situation develops, stakeholders in the DeFi community remain vigilant, emphasizing the need for robust security measures and user awareness to mitigate risks associated with such exploits.
