Balancer Issues On-Chain Ultimatum to V1 Attacker
Decentralized exchange protocol Balancer announced via X that it has sent on-chain messages to the known address associated with the Balancer V1 exploit, providing a channel for the attacker to communicate and return stolen funds. Balancer demands the attacker respond privately via Blockscan before 5:00 UTC on September 9 to initiate the contact process. If no response is received by the deadline, the attacker will be considered uncooperative, and Balancer will escalate its response.
Bounty and Immunity for Fund Return
Balancer stated that if the attacker returns the funds to the DAO multisig address, a bounty may be negotiated. Furthermore, upon verification that the return meets conditions, Balancer will not initiate investigation or prosecution solely based on the act of returning the funds.
Escalation and Legal Action
If the attacker fails to respond or rejects the proposal, Balancer will employ all technical, on-chain, and legal means to track down and prosecute the attacker. The bounty originally offered will be redirected as a reward for whistleblowers who help identify the attacker.
Background: V1 Contract Vulnerability
According to previous reports by Foresight News, on August 31 Balancer disclosed a vulnerability in its old V1 contracts that could lead to the theft of LP funds. The affected liquidity pools have been deprecated and cannot be paused, and users were urged to withdraw liquidity. Balancer's other products remain unaffected.