Yesterday, the ruthless hands of hackers intruded into the Balancer DeFi protocol and stole between $70 million to $128 million in investor assets, exploiting Balancer V2 Composable Stable Pools. However, hours after this tremendous attack, nearly $19.3 million was reportedly recovered in a contract call.
Balancer DeFi protocol, built on the Ethereum blockchain, has a V2 Composable Stable Pool, meaning a swapping machine for tokens that are supposed to always have the same price.
The malicious attack has taken the attention of Balancer, and they responded: “Any pools that could be paused have been paused and are now in recovery mode.” The company executives wrote on social media that they have already undergone extensive reviews by top firms. However, amid this audit rises the security breach that startled the crypto community.
The $19.3 million recovery
StakeWise, a liquidity staking platform, has recovered $19.3 million worth of assets out of a multi-million dollar hack. They recovered this huge amount, which equals 5,041 osETH, through an interaction with smart contracts, meaning they pulled out the stolen tokens.
Blockchain security firm Zealynx has pointed out that Balancer V2’s $128 million hack was not a surprise. The team says the DeFi protocol’s system design is bound to have hacks. And Zealynx had already warned about security risks in Balancer V2’s smart contracts.
