Balancer Labs to Shut Down After $128M Exploit, Plans Lean Restructuring

Balancer Labs is shutting down operations. The corporate entity behind the DeFi protocol is winding down after a $128 million exploit on November 3, 2025, made the company a “liability” due to mounting legal exposure.Co-founder Fernando Martinelli confirmed the decision Monday, stating that the protocol itself will continue under a decentralized structure. The immediate market reaction has been brutal, wi…