Berachain suspends network for hard fork after exploit in Balancer.
- The Berachain network is suspended to correct a critical vulnerability.
- Exploration in Balancer v2 drains over US$128 million.
- Leak affects liquidity pools and reignites concerns in DeFi protocols.
Layer 1 Berachain, built on the Cosmos ecosystem using a Proof of Liquidity model, announced that its validators coordinated a network shutdown to execute an emergency hard fork. The goal is to contain the effects of a vulnerability related to Balancer V2 that compromised several liquidity pools.
In an official statement, the Berachain team declared: “The Berachain validators have coordinated to purposefully halt the network as the core team performs an emergency hard fork to address Balancer V2-related exploits on the BEX.” The announcement explains that the shutdown was “executed purposefully, and the network will be operational shortly upon recovering all affected funds.”
The Berachain validators have coordinated to purposefully halt the Berachain network as the core team performs an emergency hard fork to address Balancer V2 related exploits on the BEX.
This halt has been executed purposefully, and the network will be operational shortly upon…
— Berachain Foundation 🐻⛓ (@berachain) November 3, 2025
On-chain analysis indicates that the attack exploited access control functions in contracts that allowed the conversion of fake fees into real assets, according to a PeckShield report, with estimates of over US$128,6 million diverted across multiple blockchains. Nansen's investigation found that the flaw allowed unauthorized withdrawals from pools involving WETH, osETH, and wstETH.
Smokey The Bera, head of security for the Berachain network, acknowledged that the interruption “may be seen as a controversial decision” but stressed that “when user funds are at risk, coordinating the entire validator team to protect them is the responsible course of action.” The network suspended operations such as USDe deposits and the minting of HONEY tokens, according to communications from the foundation.
The incident occurs amidst growing attention to the DeFi and crypto-asset sector, where even audited and proven protocols are showing vulnerability to sophisticated smart contract flaws. Berachain is adjusting its mechanism to restore the integrity of heterogeneous pools, while Balancer has acknowledged:
“We're aware of a potential vulnerability affecting Balancer v2 pools. Our engineering and security teams are investigating with high priority. We'll share verified updates and next steps as soon as we have more information.”
This movement reinforces the idea that exploration events can generate chain reactions, impacting liquidity and confidence in automated liquidity platforms and in the construction of non-native token pooling systems.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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