Berachain Foundation has sent an update on X to its users affected by last week’s exploit. The foundation overseeing the blockchain reported near-total recovery of lost funds and shared its plan for user reimbursements. The platform halted operations earlier this month to contain the attack and said it will soon launch a claims page allowing […]Berachain Foundation has sent an update on X to its users affected by last week’s exploit. The foundation overseeing the blockchain reported near-total recovery of lost funds and shared its plan for user reimbursements. The platform halted operations earlier this month to contain the attack and said it will soon launch a claims page allowing […]

Berachain reports that nearly all funds lost in the Balancer-linked exploit have now been recovered

Berachain Foundation has sent an update on X to its users affected by last week’s exploit. The foundation overseeing the blockchain reported near-total recovery of lost funds and shared its plan for user reimbursements.

The platform halted operations earlier this month to contain the attack and said it will soon launch a claims page allowing depositors to reclaim their assets.

An exploit and a white-hat recovery

Balancer V2’s Composable Stable Pools exploit, which also affected other chains, with as much as $128 million in losses across various chains, including Berachain’s decentralized exchange, BEX, which runs on a fork of Balancer V2’s codebase, lost around $12 million.

The team responded by pausing all affected vaults and liquidity pools, suspending HONEY minting, and coordinating a network-wide emergency stop among validators.

A white-hat actor that reportedly claimed to be behind the exploit contacted the foundation and offered to return the stolen funds. The hacker pre-signed transactions to return the assets to Berachain’s deployer address upon the chain’s restart, which resumed operations on November 4. The funds had been transferred back to the foundation’s wallet.

Berachain also shared a detailed breakdown that shows the recovered assets: 5.7 million sUSDe, 2.15 million USDe, 3.2 million HONEY, and smaller amounts of wBERA, iBERA, wETH, and beraETH. Excluding minor discrepancies and white-hat-owned tokens that are still being processed, the recovery covers nearly the entire value affected by the exploit.

Refund process and user verification

Berachain shared a multi-tab spreadsheet in the same post on X. The spreadsheet includes affected addresses, token balances, and estimated recoveries across each pool category.

It said that exploited pools would be placed in “emergency withdrawal mode” on Wednesday, November 12, to allow users to withdraw any remaining balances from BEX before claim redemptions begin. The claims page, which will facilitate the redistribution of recovered assets, is currently being reviewed for quality assurance and community.

“To compute how much each user is entitled for redistribution, we identified each user’s percentage ownership of the pool before the exploit,” the team explained. “We then computed each user’s pro rata share of recovered funds based on that percentage and validated the result by cross-checking post-exploit ownership figures.”

“We will keep running checks and collecting feedback regarding the distribution of recovered funds until the final recovery claim is live,” the foundation said, noting that some minor adjustments could occur as verifications continue.

What’s next for Berachain?

Berachain’s coordination with validators and its collaboration with security researchers and service providers such as LayerZero, RedStone, and Pyth can be said to have helped contain potential spillover effects. The chain was offline for roughly 30 hours before it was restarted, with no damage to consensus-layer operations or unrelated dApps, according to Berachain.

Berachain Foundation stated in its post-mortem report that it will integrate Balancer’s forthcoming post-mortem patches, retire the compromised pool types, and conduct external audits before reactivating BEX.

If you're reading this, you’re already ahead. Stay there with our newsletter.

Market Opportunity
Nowchain Logo
Nowchain Price(NOW)
$0.00256
$0.00256$0.00256
-0.77%
USD
Nowchain (NOW) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
Singapore Entrepreneur Loses Entire Crypto Portfolio After Downloading Fake Game

Singapore Entrepreneur Loses Entire Crypto Portfolio After Downloading Fake Game

The post Singapore Entrepreneur Loses Entire Crypto Portfolio After Downloading Fake Game appeared on BitcoinEthereumNews.com. In brief A Singapore-based man has
Share
BitcoinEthereumNews2025/12/18 05:17
Experts Say MUTM Could Be the Best Crypto to Invest in for Your $3,000 Budget Since BTC and ETH Are Expensive

Experts Say MUTM Could Be the Best Crypto to Invest in for Your $3,000 Budget Since BTC and ETH Are Expensive

Bitcoin (BTC) trading near $117,000 and Ethereum (ETH) around $5,000 have created an uncomfortable truth for many retail investors: entering these giants now requires a serious amount of capital. While both remain pillars of the market, the reality is that smaller portfolios often struggle to capture meaningful upside from these high-priced crypto coins. That is [...] The post Experts Say MUTM Could Be the Best Crypto to Invest in for Your $3,000 Budget Since BTC and ETH Are Expensive appeared first on Blockonomi.
Share
Blockonomi2025/09/20 20:50