LONDON (IT BOLTWISE) – The DeFi sector is in shock again after Balancer, a leading protocol on Ethereum, suffered a massive attack. Over $70 million was stolen through a vulnerability in the smart contracts. The community is in turmoil as security analysts work feverishly to investigate.
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DeFi platform Balancer, known as one of the leading automated market makers (AMM) on Ethereum, has been the victim of a massive hack in which over $70 million was stolen. The attack targeted Balancer’s V2 vaults and liquidity pools and exploited a vulnerability in smart contract interactions. The stolen tokens were quickly transferred to a newly created wallet belonging to the attacker, underscoring the urgency of the situation.
The attack began with a crucial transaction on the Ethereum mainnet that funneled the assets to a new wallet. The funds were then consolidated, probably to be washed via mixers or bridges. The complex and interconnected structure of Balancers Pools magnified the impact of the vulnerability. Similar issues have affected other AMMs in the past, particularly when dealing with deflationary tokens or pool rebalancing.
The DeFi community’s reaction was quick, but also marked by uncertainty. Balancer has so far only released an update confirming the hack and announcing an ongoing investigation. Analysts advise traders to avoid interacting with balancer pools for now as additional vulnerabilities may exist. Balancer’s native token, BAL, has lost over 15% in value in the last 24 hours, reflecting both uncertain market conditions and investor concerns.
What is worrying is that this is not the first security incident for Balancer. There have already been three major attacks in the last five years. In 2020, approximately $500,000 was stolen by exploiting the handling of deflationary tokens. Another attack in 2023 resulted in losses of $900,000. However, the current attack surpasses all previous incidents and represents one of the largest DeFi hacks of 2025.
The impact of the hack is far-reaching, as over $128 million was stolen across multiple chains on which the Balancer protocol is forked. Smaller chains such as Berachain and Sonic are particularly affected, where the attack accounts for a significant percentage of the total value locked (TVL). Balancer’s ongoing losses and lack of updates since 10:00 UTC are increasing concern in the community.
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