Balancer, an Ethereum-based decentralized finance (DeFi) protocol, has issued a warning to users after its frontend was targeted in an attack. The incident, currently under investigation, has prompted Balancer to advise users against interacting with its user interface until further notice.
In a tweet, Balancer mentioned that the attack details are being investigated but reassured the community that its vault remains secure. However, independent blockchain security firms, including PeckShield and analyst ZachXBT, estimate that approximately $238,000 worth of cryptocurrency has been stolen at the time of this report.
Several users have reported being prompted to approve a malicious contract that drains funds from their wallets when interacting with the compromised website. Meanwhile, Balancer’s website displays a warning sign, indicating potential risks.
This is the second attack on Balancer within a month. The previous incident, which occurred on August 22, resulted in an estimated $2 million exploit. Although mitigation measures have been implemented to reduce risks, affected liquidity pools cannot be paused. Balancer advises users to withdraw funds from affected LPs to prevent further exploits.