Hackers have managed to steal $128 million from decentralized finance platforms like Balancer, according to reports from Bloomberg, which referenced findings from security researchers at PeckShield and Cybers.
Balancer has acknowledged the exploit and indicated that its engineering and security teams are treating the situation as a “high priority.” They are currently investigating the breach, which they believe is related to compromised access control systems within the protocol, allowing attackers to directly alter balances.
Since its inception in 2020, Balancer has become a significant player in the cryptocurrency space, holding more than $350 million in Ethereum. The incident occurred at the end of the year when instances of cryptocurrency-related crimes surged, largely attributed to earlier high-profile hacks, including a $1.5 billion attack against exchanges like Bybit.
In 2025 alone, over $2.17 billion has reportedly been stolen, and projections suggest that if the trend continues, theft from services could exceed $4 billion by the year’s end. Notably, breaches of personal wallets are becoming more common, with individual users now constituting 23.35% of all stolen funds as of mid-year.
The report also highlighted a troubling rise in “wrench attacks,” where physical coercion is used against crypto holders, often coinciding with fluctuations in Bitcoin prices—indicative of opportunistic targeting during significant market moments.
On the other hand, blockchain technology is increasingly being woven into mainstream financial services, a shift partly driven by changes in U.S. government regulations. Stablecoins, in particular, are emerging as a potential foundation for various financial operations, including payments and currency digitization.
Despite this progress, stablecoins are still under significant scrutiny regarding risk and regulatory issues, as outlined by PYMNTS. Regulatory authorities are focusing on concerns such as financial stability, consumer protection, and anti-money laundering measures.
