Hacked for 128 million USD, Balancer dissolves the company and transitions to DAO
So who is responsible?
⚡ Balancer Labs just announced its closure today (24/3). The main reason is the hack of 128 million USD in November 2025 that caused the company to lose all its revenue and face legal liabilities.
For those who are unclear, Balancer is a decentralized exchange on Ethereum that has been operating since 2020, allowing token swaps and depositing money into pools to earn fees.
The hacker exploited a rounding error in the smart contract, withdrawing 128 million USD in 30 minutes across 6 blockchains simultaneously.
🏃 Now Balancer Labs is dissolving, the project is transitioning to operate as a DAO, meaning self-governed by the community, with no company taking responsibility.
Co-founder Fernando Martinelli stated that it is not possible to maintain a legal entity bearing legal risks while the protocol needs to move forward.
Ryan Yoon from Tiger Research bluntly stated that this seems to be Balancer's way of escaping legal risks after the hack. Transitioning to a DAO means there is no longer a "company" to sue.
📉 The current price of BAL is only about 0.15 USD, down 99% from its peak, with a market cap of over 10 million USD. The hacked funds have not been recovered.
This is a thought-provoking story for those interested in DeFi.
In the decentralized world, when incidents occur, the question "who is responsible" often lacks a clear answer. The company dissolves, the DAO takes over, but users' money is already lost.
So who is responsible?
⚡ Balancer Labs just announced its closure today (24/3). The main reason is the hack of 128 million USD in November 2025 that caused the company to lose all its revenue and face legal liabilities.
For those who are unclear, Balancer is a decentralized exchange on Ethereum that has been operating since 2020, allowing token swaps and depositing money into pools to earn fees.
The hacker exploited a rounding error in the smart contract, withdrawing 128 million USD in 30 minutes across 6 blockchains simultaneously.
🏃 Now Balancer Labs is dissolving, the project is transitioning to operate as a DAO, meaning self-governed by the community, with no company taking responsibility.
Co-founder Fernando Martinelli stated that it is not possible to maintain a legal entity bearing legal risks while the protocol needs to move forward.
Ryan Yoon from Tiger Research bluntly stated that this seems to be Balancer's way of escaping legal risks after the hack. Transitioning to a DAO means there is no longer a "company" to sue.
📉 The current price of BAL is only about 0.15 USD, down 99% from its peak, with a market cap of over 10 million USD. The hacked funds have not been recovered.
This is a thought-provoking story for those interested in DeFi.
In the decentralized world, when incidents occur, the question "who is responsible" often lacks a clear answer. The company dissolves, the DAO takes over, but users' money is already lost.