Balancer Decentralized Exchange Hacked, Nearly $1 Million Lost

One sentence summary – Balancer, a decentralized exchange, experienced a security breach resulting in the loss of almost $1 million, as hackers executed multiple flash loan attacks to manipulate pools and siphon funds, surpassing the amount initially estimated by the Balancer team, who have urged liquidity providers to withdraw funds and restricted access to affected pools.

At a glance

  • Balancer, a decentralized exchange, suffered a security breach resulting in a loss of nearly $1 million.
  • The hack occurred after the Balancer team disclosed a critical vulnerability and urged liquidity providers to withdraw funds from exposed pools.
  • The hack was executed through multiple flash loan attacks, where the attacker borrowed cryptocurrency, manipulated pools, and siphoned funds.
  • The attacker has stolen over $900,000, surpassing the initial estimate of at-risk funds mentioned by the Balancer team.
  • Balancer has urged liquidity providers to withdraw funds and restricted access to affected pools to facilitate safe withdrawals.

The details

Balancer, a popular decentralized exchange, recently suffered a significant security breach, resulting in the loss of nearly $1 million.

The hack occurred shortly after the Balancer team disclosed a critical vulnerability and urged liquidity providers to withdraw funds from exposed pools.

On August 27, Balancer fell victim to a hack that led to a loss of approximately $1 million.

The exploitation was executed through multiple flash loan attacks, a strategy where the attacker borrows cryptocurrency, manipulates affected pools, and siphons funds before repaying the loan.

The Balancer team confirmed the hack and acknowledged its connection to the previously disclosed vulnerability.

Meir Dolev, founder and CTO of Cyvers, identified the Ethereum address used by the hacker.

Dolev noted that transfers of DAI stablecoin from the attacker’s address amounted to approximately $979,420.

The attacker continues to carry out the operation, with over $900,000 of funds affected and more than $600,000 moved to a specific address.

The Balancer team has not responded to requests for comment regarding the hack.

Prior to the attack, the team had stated that only 0.08% of the total value locked (TVL), equivalent to $565,199, was still at risk, as most liquidity providers had withdrawn from the exposed pools.

However, the hackers managed to steal over $900,000, surpassing the amount mentioned by the team.

Analysts have confirmed that the attacked pools align with those mentioned by the Balancer team, although differences in token valuations and liquidity may account for discrepancies in the stolen amount.

Balancer has emphasized that the withdrawal of funds is the only way to protect them and has locked access to affected pools to enable withdrawals.

The hack on Balancer decentralized exchange resulted in a loss of nearly $1 million.

The exploit, executed through multiple flash loan attacks, has affected over $900,000 in funds.

While the Balancer team had previously claimed that most funds were safe due to withdrawals, the hackers managed to surpass the initially estimated amount.

Balancer has urged liquidity providers to withdraw funds and has restricted access to affected pools to facilitate safe withdrawals.

The team has not yet provided an official comment on the incident.

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– Popular decentralized exchange Balancer experienced a hack on August 27, resulting in a loss of nearly $1 million.
The hack occurred shortly after the Balancer team disclosed a critical vulnerability and asked liquidity providers to withdraw funds from exposed pools.
The Balancer team confirmed the hack and acknowledged the exploit related to the vulnerability.
– Meir Dolev, founder and CTO of Cyvers, identified the hacker’s Ethereum address and noted transfers of DAI stablecoin totaling approximately $979,420.
The attacker continues to carry out the operation, with around $900,000 affected and over $600,000 moved to a specific address.
The exploit was executed through multiple flash loan attacks, where the attacker borrows cryptocurrency, manipulates affected pools, and siphons funds before repaying the loan.
The Balancer team has not responded to requests for comment.
The team previously stated that only 0.08% of total TVL ($565,199) was still at risk, as most liquidity providers had withdrawn from affected pools.
– However, the hackers have stolen over $900,000, surpassing the amount mentioned by the team.
– Analysts have confirmed that the attacked pools align with those mentioned by the Balancer team.
– Differences in token valuations and liquidity may account for discrepancies in the stolen amount.
The Balancer team has emphasized that withdrawal is the only way to protect funds and has locked access to pools to enable withdrawals.
The attackers are persistently attempting to steal funds while liquidity providers delay in withdrawing.

 

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