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Decentralized exchange Balancer has issued a final on-chain appeal to the individual or group responsible for a recent exploit that drained over $100 million in digital assets. The Balancer Decentralized Autonomous Organization (DAO) set a Saturday deadline for the return of the stolen funds, offering an unspecified bounty in exchange. Failure to comply, Balancer warned, would result in the pursuit of "technical, onchain, and legal measures."
Key Takeaways
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Balancer issued an on-chain notice to the hacker behind a $100M+ exploit.
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A deadline was set for the return of funds, with an unspecified bounty offered.
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The exploit targeted Balancer's V2 Composable Stable Pools.
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Balancer has stated it will pursue technical, on-chain, and legal actions if funds are not returned.
The Exploit Details
The incident, which Balancer disclosed on Monday, saw a significant amount of staked Ether, including OSETH, WETH, and wstETH, transferred to a newly created wallet. This exploit has raised questions about the security audits of Balancer's smart contracts, despite reports indicating that four security firms had previously reviewed them.
Technical Analysis of the Breach
According to a post-mortem report released on Wednesday, the attackers exploited Balancer's v2 Stable Pools and Composable Stable v5 pools. They achieved this by combining BatchSwaps with the upscale rounding function, which impacted EXACT_OUT swaps. While Balancer's team initially indicated a bounty of up to 20% of the stolen funds (over $20 million) could be offered, no one had accepted the on-chain offer by the time of publication. Balancer has assured affected users that updates will be provided as the investigation progresses.
Sources
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