Nearly $100M in Crypto Withdrawn from Balancer Accounts Following Vulnerability Warnin

Market Trends Show XRP and LTC Taking Over Bitcoin Holds Above $26,000 

Balancer, one of the most prominent decentralized cryptocurrency trading projects on Ethereum, has advised some of its clients to withdraw their tokens after the discovery of a serious vulnerability that might put tens of millions of dollars' worth of cryptocurrency at risk.

A contributor going by the alias Xeonus wrote, "People are withdrawing fast," indicating that they are paying close attention. On Tuesday, as users rushed to leave, the protocol's TVL plunged by roughly $100 million.

On Tuesday, the platform Balancer discovered an issue with its high-interest-paying boosted pools, which it uses to facilitate the trading of ether and other tokens without relying on conventional market makers.

As a result of the leak, the decentralized protocol went into lockdown (BAL token holders manage it), and the crisis response team at Balancer triggered and paused several pools to prevent their emptying. However, "there are some pools that could not be 'paused' and are therefore at high risk," as Xeonus put it, meaning that they must be protected by user withdrawals.

The most recent calculation from Balancer suggests that around $10 million, or 1.4% of the entire value locked, is still vulnerable.

The actual defect hasn't been made public just yet, but after the dust settles, the project's contributors want to publish a post mortem. At this point, the emergency measures have protected at least 80% of the assets.

Despite the calm, investors were scared away from BAL. Token prices dropped from $3.55 just before the announcement to $3.44 at press time.

Xeonus has said, "We are fine so far." Everyone involved has been notified. So yet, no money has been taken.

Tags : Trading  Bitcoin Investing Market Wrap On-chain Data Balancer DeFi


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