Hackers have exploited a vulnerability in the decentralized finance protocol Balancer, resulting in the theft of approximately $128 million. The incident was reported on November 3, 2025, by Bloomberg, based on investigations conducted by security experts at PeckShield and Cyvers. Balancer confirmed the hack through a statement on the social media platform X, indicating that their engineering and security teams are prioritizing the investigation.
In their announcement, Balancer stated, “We’re aware of a potential exploit impacting Balancer v2 pools. Our engineering and security teams are investigating with high priority. We’ll share verified updates and next steps as soon as we have more information.” The ongoing breach is believed to be linked to compromised access control mechanisms, allowing attackers to directly manipulate balances within the protocol. Deddy Lavid, CEO of Cyvers, noted that the Balancer team is currently working to regain control, which explains the continued theft.
Founded in 2020, Balancer currently manages over $350 million in value, primarily in Ethereum. This incident contributes to a troubling trend in the cryptocurrency space, which has witnessed a surge in cybercrime throughout the year. Earlier in 2025, the hacking of crypto exchange ByBit resulted in a staggering $1.5 billion loss.
According to blockchain intelligence firm Chainalysis, this year has seen over $2.17 billion stolen from cryptocurrency services, making 2025 the most devastating year for crypto crime to date. Their 2025 Crypto Crime Mid-Year Update indicated that by the end of June, thefts had increased by 17% compared to 2022, previously the worst year for crypto-related thefts. If current trends persist, the total value stolen from services may exceed $4 billion by the end of the year.
The report highlights a notable increase in personal wallet compromises, which now account for 23.35% of all theft activity. Attackers are increasingly targeting individual users, marking a shift in tactics within the cryptocurrency ecosystem. Additionally, the report identifies a correlation between “wrench attacks,” where physical violence or coercion is used against cryptocurrency holders, and fluctuations in bitcoin prices. This suggests that attackers are opportunistically targeting individuals during periods of high-value activity.
Despite these challenges, the integration of blockchain technology into mainstream financial services is gaining momentum. This shift is partly driven by evolving policies from the U.S. government and the growing recognition of stablecoins as a potential foundation for payment infrastructures, treasury management, international flows, and the digitization of national currencies.
According to a report by PYMNTS dated October 31, 2025, while marketplace momentum is increasing, stablecoins are under scrutiny from regulators. Authorities are focusing on issues related to financial stability, consumer protection, anti-money laundering (AML) practices, and the distinction between tokens and deposits.
As the investigation into the Balancer hack continues, the incident serves as a stark reminder of the vulnerabilities that persist in the rapidly evolving world of decentralized finance.
