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Berachain’s validators coordinated an emergency network shutdown after exposure to a vulnerability related to the Balancer V2 exploitthe core group of the project said on Monday.
“Berachain’s validators have coordinated to shut down the network on purpose as the core team performs an emergency hard fork to address Balancer V2’s exploits on the BEX,” the Berachain Foundation told X. “The shutdown was performed on purpose, and the network will be operational shortly after recovering all affected funds.”
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BEX is the largest of the network decentralized exchange (DEX) and holds more than $50 million worth of tokens as of Monday.
The problem appears to stem from the same access control flaw in Balancer’s vault that allowed attackers to drain tens of millions of assets from liquidity pools earlier in the day, causing more than $100 million of various tokens to be drained from Ethereum. decentralized finance (DeFi) power.
The pause will allow developers to launch an emergency hard fork aimed at isolating compromised contracts and recovering affected assets before resuming operations.
The Balancer attack primarily hit a liquidity pool that included ethena and honey tokens, using a complex series of smart contract interactions.
Because the stolen funds involved many non-native assets (and not just Berachain’s token, BERA), the fix isn’t as simple as just retrieving a few blocks. The fork will not be simple and could potentially involving rollbacks or rollfronts.
Meanwhile, Berachain co-founder Smokey The Bera said on X that approximately $12 million in user funds were at risk, prompting validators to take coordinated action.
“I’m sure some will not be happy about this and we recognize that this could be seen as a controversial decision,” he said. “Berachain does not benefit from Ethereum’s degree of decentralization, but when user funds are threatened, we act to protect them.
Monday’s Balancer exploit hit DeFi markets impacting Balancer and several of its forks, including Beets Finance, which also confirmed a security breach in its v2 pools.
Balancer’s BAL token is down about 8% in the past hour, while Berachain’s BERA is down 6%.