In a major blow to decentralized finance, the balancer shutdown follows a $110 million exploit and triggers a sweeping overhaul of the protocol’s structure and governance.
Balancer Labs winds down after 2025 exploit
The corporate entity behind Balancer, once a leading DeFi trading platform, is ceasing operations after a devastating security breach in November 2025 that drained $110 million. Co-founder Fernando Martinelli said the decision stems from mounting legal exposure tied to the exploit and the firm’s unsustainable revenue model.
In a detailed governance forum post, Martinelli argued that the corporate structure had become „more of a burden than a benefit to the protocol’s long-term viability.” He stressed that the 2025 breach „introduced significant and persistent legal risks,” making continued operations under Balancer Labs untenable.
CEO Marcus Hardt expanded on the financial pressure. He explained that spending on liquidity incentives vastly exceeded revenues,
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