Are hackers infiltrating crypto through every loophole in digital technology? It certainly seems correct if you are already in the industry where blockchain technology is booming on one side, while crypto hacks are going through the roof on the other, putting multiple platforms in pain. Bunni DEX (Decentralized Exchange) is one such victim of a security breach, incurring $8.4 million in crypto losses during a recent exploit in September.
The exploit brought significant damage to the platform, eventually forcing it to close its doors.
Bunni DEX exploit — Losses too big to bear
September 2, 2025, was a sad day for Bunni DEX. The $8.4 million exploit, which was publicly acknowledged on that day, drained the energy of the crypto platform to the level that it could not handle the loss.
Hackers exploited an algorithmic flaw in Bunni’s Liquidity Distribution Function (LDF), a smart custom liquidity mechanism that decides where to place money so trades can happen smoothly. Hackers noticed a flaw in the system that allowed them to manipulate the setup and drain funds.
Earlier today, the company executives announced in an X post about the shutdown, saying they cannot pay “6-7 figures in audit & monitoring expenses alone” to securely relaunch the platform.
Also, bringing back Bunni to normalcy would require several months of development and business efforts, the resources that the team cannot afford. So, they clicked the final decision: Ctrl + X.
What’s next for Bunni
The team has declared that users will be able to take out their crypto assets through the platform website. Also, the executives are looking to distribute remaining treasury assets to BUNNI, LIT, and veBUNNI holders based on who owned how many tokens at a specific time. This may take a while as the team is checking legal requirements for distributing the funds.
Bunni’s smart contracts, which were previously under a BUSL license (a more restrictive license), have now changed to an MIT license, an open-source and very permissive framework. The new licensing mechanism allows anyone to freely use, copy, or modify Bunni’s innovations.
Breaches that still echo
DEX breaches are not something new in the crypto industry. KiloEX DEX suffered an exploit when hackers took away around $7 million in crypto following a price-oracle vulnerability. Cetus DEX hack on Sui Chain is another example of a similar incident. The platform lost nearly $ 220 million in a hack. And, remember the classic case of the centralized Bitcoin exchange Mt. Gox that collapsed in 2014 after losing millions of dollars in Bitcoins?
These exploitations indicate a stark reminder that, as crypto innovations move ahead, security must never be overlooked.
