Balancer DeFi Protocol Faces Potential Shutdown Following Massive Security Breach
The Balancer DeFi protocol is facing a potential shutdown after a massive security breach in November 2025, which saw $128 million drained from its v2 composable stable pools.
According to CEO Marcus Hardt, the incident has had a lasting impact on user confidence, despite efforts to recover. Revenue plummeted from $1.13 million in October 2025 to just $56,781 by August 2026.
A proposal to shut down the protocol and distribute the remaining treasury assets, valued at over $9 million, to BAL token holders is currently being voted on. The vote will take place from September 25-29.