Bithumb Suspends Balancer With Withdrawals Amid Massive DeFi Hack

Bithumb has paused Balancer (BAL) deposits and withdrawals after a major crypto hack drained more than $116 million from the DeFi platform.

The South Korean exchange says the step is to protect users as it reviews the issue with other local exchanges.

$116 Million Stolen in Balancer Crypto Hack

Balancer, a major decentralized finance platform, has been hit by a large-scale hack.

On-chain data indicates that approximately $116 million in assets were withdrawn from its vaults across multiple blockchains.

Reports indicated that the affected networks include Ethereum, Arbitrum, Polygon, Base, and Sonic.

Notably, the attack came from a weakness in Balancer’s main smart contract. A function called validateUserBalanceOp failed to check user permissions properly.

This error allowed hackers to move funds using a withdrawal operation that should have been restricted. The flaw allows them to withdraw tokens from Balancer’s vaults without approval.

Blockchain records show the stolen tokens from the crypto hack include 6,850 osETH, 6,590 WETH, and 4,260 wstETH.

A wallet linked to the hacker now holds most of the stolen assets, with about $99 million on Ethereum alone.

Other amounts are spread across smaller chains. Some funds have started moving, raising worries that they might be sent through mixers or bridges to hide their trail.

It is worth mentioning that investigators observing this exploit noted that it is one of the largest losses in the platform’s history.

For context, this incident follows two earlier security incidents, in 2021 and 2023, which also resulted in significant losses.

Bithumb Freezes Balancer Trading for Safety

Bithumb, one of South Korea’s largest exchanges, has stopped all deposits and withdrawals of Balancer (BAL) tokens.

The decision took effect on November 3, 2025, at 6 p.m local time. The exchange stated that it took this step to protect investors while the situation is being reviewed.

In its notice, Bithumb stated that it had identified potential risks associated with the Balancer network and sought to prevent further losses.

The move follows Article 17 of the Virtual Asset User Protection Act, which enables exchanges to respond quickly in the event of a crypto hack or other security incident.

Bithumb said that services for Balancer will restart only after the network is stable and safe to use.

The exchange also mentioned that other members of the Digital Asset Exchange Association (DAXA) might take similar steps.

This may include decisions like marking the token as risky or even ending its trading support.

Nevertheless, the firm stated that it continues to collaborate with local exchanges to monitor developments and safeguard customers.

It promised to share updates when deposits and withdrawals resume.

Balancer Token Price Falls After the Attack

CoinMarketCap data shows that Balancer token has dropped as the crypto hack news spread through the market.

Its price fell by about 7.6% in 24 hours, reaching $0.91. Market data indicate that its total value now stands at approximately $61.9 million, with a fully diluted value of nearly $87.7 million.

Trading activity has increased as traders reacted to the hack. Daily volume rose to $4.62 million, up more than 40% compared to the previous day.

Many traders appear to be selling BAL tokens amid fears that prices could fall further.

Balancer still holds about $763 million in total value locked, which measures the funds stored in its smart contracts.

The ratio between its market cap and TVL now sits near 0.08. Analysts say the price might stay unstable until Balancer confirms that its network is secure.

This event is another reminder of how vulnerable DeFi platforms can be to coding errors.

Exchanges like Bithumb continue to take precautionary steps as the Balancer team works to fix the issue and restore confidence in its system.