The Gnosis chain operator executed a hard fork in November to recover funds related to a $116 million balancer exploit.
In a Tuesday post on X following a notice to node operators, Gnosis said it performed the hard fork to recover some of its funds from significant abuse of Balancer. The project said the funds were “outside the hackers’ control” and suggested a partial or complete recovery.
The hard fork carried out on Monday follows the majority of validators adopting a soft fork in November in response to a balancer exploit that affected “balancer-managed contracts on the Gnosis Chain.”
sauce: gnosis chain
“There is still an active discussion in the community about how people will be able to get their funds back and how contributors to rescue efforts will be recognized and compensated,” Gnosis Infrastructure Director Philippe Shomers said in a Dec. 12 forum post. “Right now, our focus is on getting the funds back by Christmas. Once the funds are safely stored in a DAO-managed wallet, everything else will fall into place.”
On November 3, Balancer reported that the decentralized exchange and automated market maker had been compromised with over $116 million worth of digital assets. On-chain data showed that hackers transferred millions of dollars of staking ether (ETH) to a new wallet.
Related: Team Offers 20% Bounty, Balancer Exploit Breach Swells to $116 Million
Balancer later reported that the white-hat hackers were successful in recovering approximately $28 million of the stolen funds, but it appears that access to the majority of the digital assets has not been restored.
11 Audits Failed to Stop Balancer Exploit
According to the list of Balancer V2 audits available on GitHub, four different security firms have conducted 11 audits of the platform’s smart contracts. The project reported that the exploit was “isolated in the V2 composable stable pool.”
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