On-chain data suggests the DeFi protocol lost millions in osETH, WETH, and wstETH, marking Balancer’s third major security breach since 2021.
Balancer, one of the leading decentralized finance (DeFi) protocols, has reportedly suffered a major security exploit resulting in approximately $70.9 million worth of digital assets being drained from its ecosystem. Blockchain data reveals that the stolen funds — including 6,850 osETH, 6,590 WETH, and 4,260 wstETH — were moved to a new wallet, sparking fresh concerns about asset laundering through mixers and cross-chain bridges.
This incident affects Balancer V2, the protocol’s current version, and adds to a growing list of DeFi security breaches seen across the industry in 2025.
Details of the Exploit
According to on-chain analysis, the exploiter’s wallet has already begun consolidating the stolen assets, prompting fears of fund obfuscation and money laundering via decentralized privacy tools.
Balancer has not yet issued an official statement, though the protocol’s BAL token dropped over 5% in the hours following the exploit, reflecting shaken investor confidence.
Blockchain analysts estimate the total loss at roughly $70.9 million, making this one of the largest decentralized finance exploits of the year. The breach appears to have specifically impacted Balancer’s Version 2 smart contracts, though a full forensic investigation is still underway.
Repeated Security Incidents
This latest attack marks Balancer’s third known security breach, following previous exploits in 2021 and 2023, which together cost the protocol millions in user funds. The recurrence raises questions about DeFi security resilience and risk management practices across open-source liquidity platforms.
DeFi researcher Nick Ruck commented on the broader implications:
“The Balancer case highlights a systemic challenge in decentralized finance — composability and open access come with high security trade-offs. The real test will be how quickly teams respond and compensate users.”
Following news of the exploit, Balancer’s Total Value Locked (TVL) — previously over $750 million — is expected to drop sharply as liquidity providers withdraw funds for safety. Meanwhile, blockchain monitoring firms are tracking the exploiter’s transactions in real time to prevent cross-chain laundering.
The Balancer breach serves as a stark reminder of DeFi’s ongoing vulnerability to sophisticated smart contract attacks, even among established protocols.
As the investigation continues, the community awaits an official update from the Balancer team on recovery plans, security audits, and compensation measures.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.