Balancer Issues Final Warning to Hacker After $100 Million Theft
The Balancer DAO communicated an urgent onchain warning to the perpetrator of a significant exploit, demanding the return of stolen funds or facing potential legal consequences.
The Balancer Decentralized Autonomous Organization (DAO) sent an onchain alert to the wallet associated with a major exploit that resulted in the theft of over $100 million in digital assets.
In a post on Friday via X, Balancer shared a screenshot of the message directed at the individuals or group responsible for the breach related to the platform’s V2 Composable Stable Pools. They provided a deadline of Saturday to return the assets for an undisclosed bounty, warning that they would resort to “technical, onchain, and legal measures” if the funds were not returned.
“We understand that affected users are awaiting further updates,” stated Balancer regarding the exploit. “We will continue to provide information as the investigation progresses.”
Source: Balancer
The exploit, first reported by Balancer on Monday, led to a loss of staked Ether (ETH) — notably StakeWise Staked ETH (OSETH), Wrapped Ether (WETH), and Lido wstETH (wSTETH) — transferred to a newly established wallet. This incident raised eyebrows over the integrity of the exchange’s smart contracts after reviews by four security firms were highlighted.
How Did the Exploit Occur?
A Wednesday post-mortem analysis indicated that hackers exploited a combination of BatchSwaps and an upscale rounding function impacting EXACT_OUT swaps to infiltrate the v2 Stable Pools and Composable Stable v5 pools.
While Cointelegraph sought additional comments from one of the auditors, no feedback was available by the publication time.
Although Balancer’s onchain message did not disclose the bounty amount, their team initially suggested a potential reward of up to 20% of the stolen funds, exceeding $20 million. At the time of reporting, it seemed that no one had accepted the bounty offer.
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