Balancer Hack

Balancer V2 liquidity pools were exploited via a flash loan attack resulting in a loss of 1,898,586 USD worth of stablecoins.

Balancer, an AMM-based DEX running on multiple chains including Ethereum, Optimism, and Fantom, was exploited on August 27, 2023. The attacker exploited the Balancer V2 liquidity pools in multiple transactions via a flashloan attack. They took a flash loan from Aave and used the loaned funds to exploit Balancer's smart contracts.

Balancer had made their users aware of the vulnerability on January 6, 2023, and mentioned that they started the mitigation process. On August 22, 2023, they disclosed that they had mitigated over 80% of the funds, while 4% of Balancer's TVL was still at risk. Users were advised to withdraw affected LPs immediately.

The stolen funds in all three affected chains were swapped for DAI and then bridged to the mainnet. The funds were transferred to other EOAs that are currently holding the funds as of August 29, 2023. The total loss was 1,898,586 USD worth of stablecoins such as USDT, USDC, and DAI.

This included 1,000,377 USD from Ethereum, 221,855 USD from the Optimism chain, and 676,354 USD from the Fantom chain.

Attackers:

- https://etherscan.io/address/0xEd187F37…2b7a9B

- https://optimistic.etherscan.io/address/0xbc794f1f…b8fd3c

- https://ftmscan.com/address/0x64e08fa8…c86760

Funds Holders as of Aug 28, 2023:

- https://etherscan.io/address/0xb23711b9…df38c1

- https://etherscan.io/address/0x429313e5…b5762f

- https://etherscan.io/address/0xbc794f1f…b8fd3c

Malicious Transactions:

- https://etherscan.io/tx/0x2a027c8b…606c2d

- https://etherscan.io/tx/0x773fa597…0bfa4a

- https://etherscan.io/tx/0x42441d8e…80daa4

- https://etherscan.io/tx/0x72a655ce…64686e

- https://etherscan.io/tx/0x85d7aec3…b3c2df

Malicious Contracts:

- https://etherscan.io/address/0x2100dCd8…2944f0

- https://etherscan.io/address/0x48567fb8…af103b

- https://etherscan.io/address/0x7bceff0a…b3ccca

- https://etherscan.io/address/0x254c36e9…A1eE14

- https://etherscan.io/address/0x561b6b0d…647a1d

Funds Transfer Transactions:

- https://etherscan.io/tx/0x549e2865…ce616a

- https://etherscan.io/tx/0xa2b6caf2…495c44

- https://etherscan.io/tx/0x3e4bcdc3…58f1c4