Balancer Protocol Loses $238K in Crypto in Ongoing DNS Attack

DeFi protocol Balancer is currently under a DNS attack, with thousands of dollars feared to have been stolen so far.

Balancer protocol infested with bugs washed up on the beach.
Created by Kornelija Poderskytė from DailyCoin
  • Balancer protocol has suffered another attack in less than a month.
  • Crypto assets worth thousands of dollars are feared to be missing.
  • The protocol is currently investigating the attack.

Ethereum-based decentralized finance protocol, Balancer, has been attacked, and thousands of dollars in crypto assets have been stolen so far.

The protocol is experiencing a second attack in less than a month after it flagged a critical vulnerability on August 22, which led to an exploit a few days later.

An Underway Attack

In a Twitter (X) post addressed to a community of nearly 150,000 followers, Balancer confirmed on September 19 that its front end was under attack and that an investigation was underway, urging users to avoid interactions with the Balancer UI until further notice.

On September 20, the protocol shared another update on the cybersecurity incident, confirming that it is an ongoing DNS attack and reiterating that users should avoid interacting with the protocol’s UI, both on the website and mobile app, as the Balancer DAO works to find the solution.

According to some anecdotal accounts shared on Twitter (X) by people who tried to access Balancer’s website, users are prompted to approve a malicious contract that drains funds from wallets, a claim also affirmed by Web3 analyst “cyclop.”

While Balancer has not commented on whether funds have been affected in the ongoing exploit, A blockchain investigation firm and an online community personality have revealed that crypto assets worth hundreds of thousands might be missing from the protocol’s vault.

The Stolen Funds

Blockchain security firm PeckShield reported that Balancer had lost approximately $238,000 in crypto to the ongoing attack.  The security firm said the attacker swapped 15.4 ETH for approximately $2,370 before transferring the funds to MEXC Deposit.

Blockchain analyst ZachXBT was among the first security experts to comment on the attack, who also confirmed PeckShield’s figure after investigating a wallet address allegedly belonging to the attacker.

Read more about how another DeFi protocol was hacked recently:
Zunami Protocol Hacked, Stablecoin Pools Manipulated

Stay updated on the impact of the Curve Finance hack:
Unraveling the Curve Finance Hack, the Causes and Its Impact

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.