Decentralized cryptocurrency exchange Balancer acknowledged that it suffered a vulnerability over the weekend, shortly after a critical vulnerability affecting certain V2 pools was exposed about a week ago.
Balancer Confirms Security Issue After Previous Vulnerability Warning
This incident has raised concerns about the ongoing challenges associated with the security of decentralized platforms and the protection of user funds.
While Balancer is taking steps to mitigate some of the potential risks from the disclosed vulnerability and urging users to withdraw their funds, the exchange noted that it was unable to stop the affected pools before the exploit occurred.
“Balancer is aware of a vulnerability. Mitigation procedures have greatly reduced risks, but we are unable to pause the affected pools,” the Balancer team said in a statement on Sunday.
On August 22, when the first warning was issued, approximately 4% of Balancer's total funds were considered at risk. Despite efforts to resolve the issue, unauthorized funds movements appear to have taken place.
The financial implications of the vulnerability remain unclear for the time being. However, Meir Dolev, founder and CTO of analyst firm Cyvers, reported that approximately $900,000 worth of funds were transferred from Balancer pools, which may be linked to the vulnerability.
It was determined that $ 979,000 worth of transactions involving the DAI stablecoin went to an address believed to belong to the hacker responsible for the vulnerability.
*Not investment advice.
