Balancer DAO Issues Onchain Notice After $100 Million Exploit

The Balancer Decentralized Autonomous Organization (DAO) has issued an onchain notice to the wallet holder behind a recent exploit that resulted in the theft of over $100 million in digital assets. In a Friday post on X (formerly Twitter), Balancer shared a copy of the message sent to the individual or group responsible for the incident involving the platform’s V2 Composable Stable Pools. The decentralized exchange has offered the responsible party until Saturday to return the funds in exchange for an unspecified bounty. Failure to comply will result in the DAO pursuing “technical, onchain, and legal measures.”

“We understand that affected users are awaiting further updates,” Balancer stated regarding the exploit. “We will continue to provide information as the investigation progresses.”

The exploit, which Balancer reported to its users on Monday, resulted in the movement of over $100 million worth of staked Ether (ETH) – including StakeWise Staked ETH (OSETH), Wrapped Ether (WETH), and Lido wstETH (WSTETH) – to a newly created wallet. This security breach has raised questions regarding the audits of the exchange’s smart contracts, particularly given that reports indicate at least four security firms had previously reviewed them.

How the Exploit Occurred

According to a post-mortem report released on Wednesday, the attackers utilized a combination of BatchSwaps and the upscale rounding function affecting EXACT_OUT swaps to exploit vulnerabilities within the v2 Stable Pools and Composable Stable v5 pools. Cointelegraph reached out to one of the auditors for comment but has yet to receive a response.

While the onchain message did not specify the precise amount of the bounty, Balancer’s team initially indicated that they would offer up to 20% of the stolen funds, potentially exceeding $20 million. As of the time of this report, no acceptance of the onchain offer has been observed.


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