Ethereum News Update: Berachain Suspends Network Operations to Prevent $116M DeFi Theft, Prioritizing Security Over Decentralization
- Berachain halted network operations via emergency hard fork to address a $116M exploit targeting Balancer V2 pools on its BEX exchange. - Attackers drained WETH, osETH, and wstETH across Ethereum and Layer 2 networks, prompting validation nodes to freeze activity for security fixes. - Balancer's BAL token dropped 8% amid its third major breach since 2020, while security firms flagged $84M in suspicious cross-chain transactions. - Experts urge stronger smart contract audits and multi-signature safeguards
Berachain, a blockchain network developed on
The breach, initially reported on November 3, saw more than $70 million in digital assets moved to a newly created wallet, with some estimates climbing to $116 million as the attack spread across Ethereum’s Layer 1 and Layer 2 networks, including
Following the exploit, Balancer’s native token BAL declined by 8%, and Berachain’s BERA dropped 6%, reflecting investor unease, according to CoinDesk. This breach is Balancer’s third major security issue since 2020, raising doubts about DeFi protocol robustness. In 2023, Balancer lost $238,000 to a phishing attack via DNS hijacking, and in 2020, a $500,000 exploit took advantage of vulnerabilities in deflationary token processing, as noted in a
The attacker exploited weaknesses in Balancer’s smart contracts, especially infinite approval mechanisms for wrapped ETH derivatives, enabling unauthorized token creation and rapid asset withdrawal, Coinotag reported. Blockchain analysts observed that the perpetrator divided the stolen assets among new wallets, complicating recovery. Meanwhile, a previously inactive whale withdrew $6.5 million from Balancer pools, indicating increased caution among major holders, according to the same Coinotag analysis.
Berachain’s swift action stands in contrast to Balancer’s slower response, as the latter has not yet released an official statement. Moderators on Balancer’s Discord have urged users to avoid interacting with suspicious contracts until more information is available, as reported by
As the DeFi sector deals with the aftermath of this attack, market volatility persists. Bitcoin’s 19% liquidation event in October—when its price fell from $126,000 to $105,000—has further shaken investor trust, according to a
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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