Balancer Labs, the corporate entity behind the decentralised exchange protocol Balancer, is shutting down as financial strain and legal risks reshape its future. Co-founder Fernando Martinelli confirmed the decision in a governance forum post on Tuesday, stating that the company is no longer sustainable. The move follows security incidents, including a major exploit in November 2025 that drained about $110 million in digital assets. The entity that incubated and funded the protocol will be wound down under a broader restructuring plan. Exploit impact and legal exposure The November 2025 exploit marked the third known breach linked to Balancer and involved assets such as osETH, WETH, and wstETH.
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