Berachain Halts Network After $117 Million Balancer Hack
Berachain, an Ethereum-compatible Layer 1 blockchain, paused its network after a major hack drained over $117 million from the Balancer protocol. The Berachain Foundation said validators agreed to halt the network. Developers are now working on an emergency fix.
The attack targeted the Ethena/Honey tripool using a complex smart contract transaction with non-native assets. The rollback requires a more extensive solution than a standard hard fork. The foundation confirmed the pause was deliberate and temporary, promising normal operations once funds are secured.
Validator Coordination and Community Response
Berachain’s Chief Smokey Officer, Smokey The Bera, addressed the community on X (formerly Twitter). He acknowledged the tough decision to halt the network. “Some won’t be happy about this, and we recognize it may be contentious,” he said.
He added that Berachain lacks Ethereum’s level of decentralization, but the team coordinated validators to protect users. Around $12 million in Berachain user funds were at risk from the attacker.
The Balancer exploit also impacted Ethereum, Base, Optimism, and Polygon blockchains. Stolen assets included 7,838 WETH (worth about $29.1 million), 6,841 osETH ($26.8 million), and other liquid staking tokens. The attacker converted these assets to ETH in real time, increasing urgency.
This incident comes two weeks after Greenlane Holdings Inc. raised $110 million in funding for Berachain’s native token, BERA. The round was led by Polychain Capital and included Blockchain.com, Kraken, and other major investors. The deal involved $50 million cash and $60 million in BERA tokens.
Security Versus Decentralization Debate
Berachain’s network halt highlights a tension between security and decentralization. Some crypto users criticized the shutdown as against blockchain’s decentralized principles.
One user said decentralization is often preached but not implemented during major hacks. However, Uttam Singh from Alchemy argued that protecting users’ funds was correct. Similar emergency actions occurred before with Sui, Hyperliquid, and other DeFi platforms.
The incident shows the challenges in securing decentralized finance while maintaining user trust. Berachain’s recovery steps will influence if users return confidently to the platform.
