- The Berachain Foundation confirmed the implementation of a hard fork to patch the recent exploit in BEX’s Balancer V2 protocol.
- The core team also revealed that it has coordinated the recovery of the missing funds.
Berachain (BERA) sharply declined on Monday following the discovery of a vulnerability in its decentralized exchange (DEX). The exploit at the Berachain exchange’s (BEX) Balancer V2 protocol also led to the loss of funds.
On Tuesday, the Berachain Foundation provided an update about the issue. Along the way, it assured that it had already traced the missing funds and was on its way to recovering them.
Berachain Exploit Update
The Berachain network is still down at the time of this report after its validators had coordinated to purposely halt its system on Monday. It also paused the minting of HONEY tokens for a good measure to contain the problem in its liquidity protocol.
The team explained that the fix required a hard fork because the issue extended even to non-native assets. Various on-chain analytics platforms estimated the loss to have amounted to over $128.6 million across the Ethereum (ETH), Base (BASE), Polygon (POL), Arbitrum (ARB), Optimism (OP), and Sonic (S) chains.
At past midnight on Tuesday, Berachain confirmed that it had already rolled out the hard fork. Additionally, validators have already upgraded their nodes.
However, the team claimed that it wanted to ensure the smooth rollout of the patch and that all infrastructure partners, like oracle providers, have upgraded their RPCs (Remote Procedure Call). Likewise, it will coordinate with bridges, custodians, and centralized exchange (CEX) partners before service restoration.
BEX Funds are Safe
Moreover, Berachain stated that all user funds are safe. According to the foundation, a “white hat” group with a history of operating a MEV (Maximal Extractable Value) bot at BEX held the missing assets.
The core team said the white hat group indicated its cooperation in returning the funds at BEX. The group showed willingness to pre-sign a set of transactions to transfer the funds to the Berachain deployer address. The transactions will proceed once the chain goes live.
Implementation of Precautionary Measures
To prevent the repetition of the incident and other possible risks, the Berachain Foundation guaranteed that it will conduct a comprehensive check of the various safety measures implemented across the BEX, core apps, and the Berachain network as a whole. Furthermore, it would provide more information about its forward-facing plans for its native exchange upon the network’s reactivation and completion of the incoming evaluation.
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