Pool Token

Million

Base

Polygon (Old)

Balancer

<ul>
 <li>Balancer proposes $8M distribution to users affected by exploit.</li>
 <li>White hats recover millions, earn bounties for Balancer exploit rescue.</li>
 <li>Affected liquidity providers to receive pro-rata funds from Balancer.</li>
</ul>
Balancer, a decentralized exchange and automated portfolio manager, is moving forward with a proposal to distribute approximately $8 million to users impacted by a major exploit earlier this month. The exploit drained over $128 million from Balancer’s vaults. <a href="https://forum.balancer.fi/t/rfc-distribution-of-rescued-funds-from-balancer-v2-november-3rd-2025-attacks/6883" target="_blank" rel="noopener noreferrer nofollow">According to the proposal</a>, the $8 million will be allocated to liquidity providers (LPs) who were directly affected by the attack. 
The funds have been recovered through a combination of white hat interventions and internal rescue operations. While a total of $28 million was salvaged, approximately $19.7 million in osETH and osGNO is currently being managed by StakeWise, a liquid staking protocol. 
The reimbursement model, outlined in the proposal, follows a non-socialized approach, meaning that only the affected LPs will receive the funds. The distribution will be pro-rata, based on the Balancer Pool Token (BPT) holdings at the time of the exploit. 
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<h2 id="white-hat-contributions-and-bounties">White Hat Contributions and Bounties</h2>
The proposal also addresses the role of white hats who played a key part in the recovery process. A total of six white hat actors <a href="https://36crypto.com/us-doj-seizes-15m-stolen-by-north-korean-hackers-secures-multiple-guilty-pleas/" target="_blank" rel="noopener noreferrer nofollow">successfully recovered</a> about $3.86 million during the exploit. 
These actors will receive bounties, with each bounty capped at $1 million per operation. The largest recovery came from a white hat known as “Anon #1,” who salvaged $2.68 million on the Polygon network. Other contributors include security researcher Bitfinding, who recovered $963,832 on Ethereum mainnet, with smaller amounts recovered on Base and Arbitrum. 
To claim their bounties, white hats will undergo identity verification, know-your-client checks, and sanctions screening under Balancer’s SEAL Safe Harbor Agreement. Interestingly, the Arbitrum-based rescuers have opted to waive their bounties by declining to disclose their identities. 
<h2 id="claim-window-and-future-decisions">Claim Window and Future Decisions</h2>
Balancer’s proposal includes a 180-day claim window for users and white hats. After this period, any unclaimed assets will be considered dormant. The proposal specifies that any unclaimed funds will require a governance decision for potential reallocation. This 180-day window is set to provide ample time for affected LPs and white hats to make their claims, ensuring that the process remains transparent and organized. 
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The post <a rel="noopener noreferrer nofollow" href="https://36crypto.com/balancer-proposes-8-million-in-fund-distribution-to-users-affected-by-exploit/">Balancer Proposes $8 Million in Fund Distribution to Users Affected by Exploit</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://36crypto.com">36Crypto</a>.

Balancer Proposes $8 Million in Fund Distribution to Users Affected by Exploit

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