The decentralized finance protocol Balancer, which is based on the Ethereum network, recently warned its community of an attack on its Front end. This attack resulted in the theft of up to $238,000 worth of cryptocurrencies. The incident is Balancer’s second attack in about a month.
Balancer notified its community via X (Twitter) on September 19th at 23:49 UTC. Users received a strong recommendation not to interact with Balancer’s interface for the time being.
The Balancer frontend is under attack. The issue is currently being investigated. Please DO NOT interact with the Balancer interface until further notice!
– Balancer (@Balancer) September 19, 2023
According to an estimate by blockchain security firm PeckShield, the attack on Balancer resulted in the loss of more than $238,000 worth of cryptocurrencies. Some users reported that they were asked to agree to a malicious contract. This resulted in their wallets being emptied and caused great concern among the community and crypto investors.
— PeckShieldAlert (@PeckShieldAlert) September 20, 2023
The Balancer team is currently investigating the details of the attack. No statement has been released at this time regarding the impact on user funds. Despite this, a Balancer employee confirmed that the company’s safe was untouched and 100% healthy.
The Ethereum-based balancer remains in the spotlight
This incident occurred just a month after an earlier attack in which Balancer is believed to have lost millions. These back-to-back attacks highlight the ongoing challenges DeFi platforms face in terms of security and protection.
Balancer has made significant efforts to strengthen its security measures. The company launched a $2 million bug bounty program in 2021. This program rewards hackers for finding software bugs, increasing security. Despite these efforts, DeFi protocols like Balancer remain attractive targets for hackers.
Following this attack, experts and the Balancer community strongly advise against interacting with the Balancer website. The Company remains committed to ensuring the integrity of its platform. It is expected to work closely with the community to take the necessary measures to prevent such incidents in the future.