Balancer Community Proposes Distribution of Recovered Hack Funds

According to HashNews, two members of the Balancer protocol community submitted a proposal on Thursday to allocate part of the funds recovered from the $11.6 million vulnerability exploited on November 11. Approximately $28 million was recovered by white-hat hackers, internal rescuers, and Ethereum liquid staking platform StakeWise. The proposal only covers $8 million recovered by white-hat hackers and internal rescuers, while the nearly $20 million recovered by StakeWise will be separately distributed to its users. The proposal suggests that compensation should not be socialized and should only be allocated to liquidity pools that actually lost funds, with payments made proportionally based on each holder’s share in the liquidity pool, i.e., Balancer Pool Tokens (BPT). Compensation should also be paid in the same tokens that were lost to avoid price discrepancies between different digital assets. According to Deddy Lavid, CEO of blockchain cybersecurity firm Cyvers, the Balancer hack was one of the most complex attacks in 2025, highlighting the importance of security for crypto users. Despite being audited 11 times by four different blockchain security companies, the platform was still attacked, raising questions about the value of audits. On November 5, Balancer released a post-mortem report identifying the root cause of the hack as a complex vulnerability that exploited a rounding function in stable pool swaps.