TL;DR
- Berachain shared new updates after the exploit impacting BEX pools, reinforcing that user fund protection remains the top priority.
- A new binary now blocks transfers from wallets tied to the exploited funds, allowing movement only to a Foundation-controlled address.
- An emergency hard fork is expected within hours, with a follow-up fork possible if funds are not voluntarily returned by the parties claiming to have whitehat custody.
Berachain released an updated statement following the temporary suspension of BEX liquidity pools and HONEY minting due to the Balancer V2 related exploit. The chain remains paused while the core team prepares an emergency hard fork to restore operations in a secure and controlled manner. The approach reflects a proactive and builder-focused mindset, showing how decentralization can adapt swiftly during critical events without compromising long term development.
A new binary has been shipped to freeze token transfers from the addresses that withdrew funds from the BEX pools. The only permitted destination is a Foundation wallet dedicated to returning assets to affected users. The binary also applies extra restrictions to BEX pools to block further token movement while the technical analysis continues. Before deploying the fix, the team consulted with several experienced contributors in the Balancer ecosystem, including Zeroshadow, Cantina, Zenith and other specialists. The Seal 911 group also provided input during the process. While insights were valuable, the exact exploit mechanism remains under investigation, and BEX will remain paused until a sustainable mitigation model is confirmed in alignment with Balancer’s long term approach.
Whitehat Outreach And Fund Recovery Efforts
A group known for operating MEV bots on Berachain contacted the team after the chain suspension, stating they “whitehatted” the compromised funds to prevent further damage. On-chain messages were shared as evidence of their intent to return the assets. Berachain expressed appreciation for the outreach but will keep transfer limitations active for these addresses until the funds are safely returned to the Foundation wallet once the chain restarts. If verified as genuine whitehats, their cooperation could accelerate recovery for impacted liquidity providers and highlight the constructive role of ethical intervention in critical moments.
Next Steps For Network Stabilization
If funds are not voluntarily returned, the validator set is expected to coordinate a follow-up hard fork shortly after the first one to enforce fund restitution. Because the exploit involves non-native assets, the recovery process carries additional technical complexity. Near term priorities focus on preventing further losses, securing asset recovery and restoring chain functionality responsibly.
