Balancer, a decentralized financial protocol based on Ethereum, warns users to stay away from its website following a frontend attack.
The platform this week urged users not to interact with the Balancer user interface until further notice, and details of the attack are currently confidential due to an ongoing investigation. The company has not officially commented on whether user funds have been compromised, but Balancer collaborator Cosme Fulanito reportedly confirmed that the Balancer treasury remains ‘100 percent fine’.
However, blockchain security firms, including PeckShield and blockchain analyst ZachXBT, have estimated that at least $238,000 worth of cryptocurrency has been stolen.
Some users report being asked to approve a malicious contract that drains users’ wallets when interacting with the website.
One expert explained what other users reportedly experienced.
– If you open the website, it asks you to change the blockchain where you hold the most money. After that fraudulent transaction is sent, once confirmed, the money disappears. Do not open the website!! – he wrote.
This is the second attack on Balancer in less than a month after the application pointed out a critical vulnerability on August 22, suffering an estimated exploitation of two million dollars related to the vulnerability just a few days later.
– Balancer is aware of the exploitation related to the vulnerability below – the protocol team announced on X on August 27, adding that while the mitigation measures taken in recent days have drastically reduced risks, the affected pools could not be paused.
– To prevent further exploits, users must withdraw from the affected liquidity pools – the report advises.
