Berachain Recovers $12.8 Million in BEX Funds Following Balancer-Linked Exploit
Berachain has confirmed the successful recovery of approximately $12.8 million in assets associated with the recent exploit affecting the BEX decentralized platform, which runs natively on the Berachain network. The incident was directly connected to a broader vulnerability identified in Balancer v2 smart contract infrastructure. This flaw resulted in a widespread liquidity drain of an estimated $120 million across multiple blockchain networks, impacting decentralized platforms and liquidity pools integrated with Balancer technology.
BEX, as a major liquidity venue within the Berachain ecosystem, was among the platforms affected. Once abnormal activity was detected, the Berachain Foundation initiated an emergency response to limit the scope of the exploit and secureguard user funds.
Emergency Network Response and Security Actions
To prevent further unauthorized movements of liquidity and mitigate potential cascading impacts, Berachain halted network operations temporarily. This pause enabled developers to isolate the issue and ensure no additional value could be withdrawn as the situation unfolded. Following analysis and internal review, the network executed an emergency hard fork intended to remove the exploit path and stabilize chain-level security.
While the network has since resumed normal block production, some advanced BEX trading and liquidity features remain temporarily restricted. Developers are conducting ongoing audits to verify system integrity before full functionality is restored. The Foundation has emphasized that these restrictions are precautionary and intended to ensure user securety.
The recovery of the $12.8 million in affected funds was achieved with assistance from a cooperating white hat actor. Berachain leadership acknowledged the white hat’s role in preventing permanent loss, noting that discussions are underway regarding an appropriate bounty or recognition. According to ahead internal assessments, no permanent user losses resulted from the exploit, and the recovery process did not require forced rollbacks or user-level account adjustments.
Ongoing Review and Future Strengthening Measures
Berachain and BEX developers are coordinating with Balancer contributors, external security firms, and independent smart contract auditors to lower future attack surfaces. The Foundation has stated that it intends to publish transparency reports detailing the timeline of the incident, funds recovery, technical patching approach, and long-term upgrade plans.
This incident has reignited industry-wide discussions about the shared-risk architecture of decentralized finance, particularly the reliance on composable smart contract layers across multiple blockchain ecosystems. While such interoperability enables efficient liquidity aggregation and flexible trading infrastructure, it also increases exposure to systemic vulnerabilities.
Despite the temporary disruption, Berachain’s rapid containment, recovery, and user asset protection efforts may reinforce its reputation among institutional and retail participants viewking assurances of operational resilience. The network’s response has highlighted the importance of clear communication, rapid protocol-level decision-making, and collaborative security processes in the evolving DeFi landscape.
