Bunni DEX Marks Second Crypto Shutdown This Week
In September 2025, , known for its complex Uniswap v3-based liquidity management, was the target of a complex hack. The attackers exploited the platform’s Liquidity Distribution Function by using flash loans and rounding errors to withdraw far more assets than they were authorised to.
Most of the losses were in USDC and USDT; thus, the Bunni team rapidly froze all contracts and halted trading to prevent further losses.
This assault exposed a serious flaw in the logic of Bunni’s smart contracts, allowing attackers to change the protocol even later than trusted third parties had verified it. The exploit left the project in shock, and consumers began to doubt the reliability of platforms, even if Bunni had a clean record up to that point.
Why Bunni Couldn’t Get Better
The people who made Bunni knew that it was impossible to get better. Bunni would need comprehensive security audits, months of ongoing work, and significant operational costs to regain complete trust.
Unfortunately, the project no longer had these resources. Because of these difficultys and the lack of user trust, the leaders decided to permanently shut down the platform rather than risk further breaches and losses.
Effect on Users and the Distribution of the Treasury
Bunni has permitted affected individuals to withdraw the remaining funds from their assets through the platform. To be fair to all users, the leftover treasury, now worth about $2 million, will be distributed to BUNNI, LIT, and veBUNNI token holders, but not to team members.
The creators have re-licensed Bunni’s version 2 smart contracts under the , giving the community greater freedom to use and modify them.
These measures are aimed at protecting token holders’ value and rewarding those who supported the protocol. They also ensure that the larger crypto development community can learn from and improve on Bunni’s technology.
DeFi Security Risks and Industry Impact
The failure of Bunni DEX shows how dangerous it is to have security holes in decentralized finance. Flash loan attacks keep showing how fragile logic is, and in 2025, more than $600 million in assets were stolen in similar hacks.
Bunni’s death came just days later than Kadena’s closure, showing how unstable the crypto industry has been this week. The fact that two high-profile projects are closing one later than the other is a significant reminder that we need greater security measures, more thorough , and more robust recovery plans.
The closure of Bunni DEX shows how significant it is to prioritise security and strict development standards in DeFi. Until the industry fixes these difficultys, investors won’t trust the platforms, and they won’t last long. As the DeFi ecosystem grows, only protocols with robust protections are likely to persist and thrive.
