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Cryptocurrency exchange Balancer confirmed that on November 3, around 7:48 AM UTC, an exploit impacted its V2 Composable Stable Pools, prompting an immediate investigation in collaboration with leading blockchain security researchers. According to the Balancer team’s official statement, the incident remains isolated to the V2 Composable Stable Pools and has not affected Balancer V3 or any other pools in its ecosystem.
Because the affected pools have been operational on-chain for several years, many had already exceeded the protocol’s pause window — a time limit that determines how long a pool can be frozen after deployment. Pools that were still within this timeframe were swiftly paused and entered recovery mode, minimizing potential losses while the investigation continues.
The protocol emphasized that it is working closely with security and legal experts to assess the scope of the issue and ensure user protection. Balancer has also committed to releasing a comprehensive post-mortem report once its internal review concludes.
Balancer reiterated its long-standing focus on operational security, noting that it has undergone multiple independent audits and has maintained a bug bounty program to encourage ongoing scrutiny from the cybersecurity community. Despite these safeguards, the protocol acknowledged the evolving sophistication of DeFi exploits and pledged to strengthen its defenses further.
In a public advisory, Balancer also warned users about fraudulent messages circulating online from impostors claiming to represent the Balancer Security Team. The company clarified that all legitimate updates will only be posted through its official X account and Discord server, urging users not to click on unsolicited links or engage with unverified messages.
As investigations continue, Balancer’s quick response and transparency highlight the protocol’s focus on user safety and accountability — key tenets for maintaining trust in the decentralized finance sector. The upcoming post-mortem report is expected to provide further clarity on the exploit’s origin, its financial impact, and potential mitigation strategies to prevent similar incidents in the future.
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