The post Balancer Labs Shuts Down After Exploit Fresh Start! appeared on BitcoinEthereumNews.com.

Balancer co-founder Fernando Martinelli announces BLabs shutdown after a damaging exploit, outlining a leaner path forward for the protocol. Balancer Labs is shutting down. Co-founder Fernando Martinelli made the announcement in a detailed post addressed to the Balancer community.  He cited legal risks from the November 2025 exploit as the primary driver. The corporate entity, he said, had become a burden rather than a benefit.  Martinelli framed the shutdown as a step toward responsible stewardship of the protocol. Why Balancer Labs Is Closing After the November Exploit The November 3, 2025 v2 exploit triggered serious and ongoing legal exposure for Balancer Labs.  Martinelli noted that carrying that liability while the protocol moves forward made no sense. The protocol had already evolved past the need for a traditional company at its center. The DAO, Foundation, and service-provider model now drive day-to-day operations. According to Martinelli, that structure is the right fit going forward.  He confirmed that key BLabs team members will move to Balancer OpCo, pending a governance vote. Marcus and Danko are set to present the operations proposal through a BIP. Martinelli expressed full support for that process. Balancer co-founder Fernando Martinelli said Balancer Labs will be shut down, primarily due to legal exposure stemming from the November 2025 exploit and the entity’s lack of sustainable revenue under the current structure. The protocol will transition to a DAO, foundation, and… pic.twitter.com/tdS0WoQ8SH — Wu Blockchain (@WuBlockchain) March 23, 2026 Balancer Protocol Still Generating Revenue Despite the Crisis Despite calls for a complete shutdown, Martinelli ruled that option out.  His reasoning was straightforward. The protocol generated over one million USD in total fees over the past three months on an annualized basis. He pointed out that the technology still works. The core issue, in his view, is the broken economics wrapped around…

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Filed under: News - @ March 24, 2026 11:21 am