Bunni DEX Shuts Down Following Major Exploit

Decentralized exchange Bunni has declared it will cease operations after suffering an exploit that resulted in an $8.4 million loss last month, marking this as the second crypto project to shut down this week.

In a recent post on X, the Bunni development team explained that they lack the necessary funds to continue. They stated, “The recent exploit has forced Bunni’s growth to a halt, and in order to securely relaunch, we’d need to pay 6-7 figures in audit & monitoring expenses alone — requiring capital that we simply don’t have.”

A few days prior, the creators of layer-1 blockchain Kadena had also announced a similar cessation of operations.

Bunni Shut Down Source: Bunni

Background on the Exploit

The Bunni protocol was compromised on September 2. In a subsequent blog post, the team indicated that the attack was directed at the protocol’s codebase. Bunni experienced significant growth prior to the incident, with total value locked escalating sharply.

Moving Forward

Despite the shutdown, the Bunni team is open-sourcing their smart contracts under the MIT license, which will allow developers to utilize the innovations introduced by Bunni. They plan to distribute any remaining treasury assets to token holders following necessary legal approvals.

For more detailed information, see related articles on the shutting down of Kadena and its current status.