Balancer's $70M Exploit Highlights DeFi's Automation Risks

The DeFi landscape faced a significant security breach this week as Ethereum-based protocol Balancer suffered a $70 million exploit, marking its third major hack in five years and raising fresh concerns about vulnerabilities in automated market makers (AMMs). On-chain data revealed attackers drained multiple liquidity pools, consolidating assets into a single wallet within minutes, according to a Yahoo Finance report. The stolen tokens included 6,850 OSETH, 6,590 WETH, and 4,260 wSTETH, with blockchain analysts suggesting a potential flaw in how Balancer handles pool balances.

The attack follows a pattern of security incidents dating back to 2020, including a $500,000 flash loan exploit and a $900,000 loss in 2023. This latest breach dwarfs previous incidents and ranks as one of the largest DeFi hacks of 2025, the Yahoo piece noted. Balancer's native token (BAL) dropped over 8% amid the crisis, reflecting investor anxiety over the protocol's transparency and response time.

Meanwhile, Binance, the world's largest crypto exchange, continued its strategic expansion in the political arena. The exchange enabled spot trading for the Trump family's crypto venture, World Liberty Financial (WLFI), after former CEO Changpeng Zhao's release from prison, according to a Crypto.News recap. That recap said the partnership helped WLFI's stablecoin market cap surge from $127 million to $2.1 billion, underscoring Binance's growing influence in politically connected crypto projects.

In traditional markets, Spirit AeroSystems reported a third-quarter net loss of $724.3 million, a 52% increase from the prior year's $476.9 million loss, according to Spirit AeroSystems' earnings release. The aerospace supplier attributed the decline to ongoing production challenges and supply chain disruptions. Similarly, 3D Systems Corp is projected to report a 17.6% revenue drop to $93.04 million for its fiscal third quarter, with analysts forecasting a loss of 8 cents per share, according to a TradingView earnings preview.

The crypto sector also saw a major listing event as Kite (KITE) joined Binance, with trading pairs like KITE/USDT expected to drive liquidity and price volatility, according to a TradingView listing notice. Listings on major exchanges often trigger sharp price movements as new investors gain access, though early holders may also capitalize on the momentum to sell.

Tether, the world's largest stablecoin issuer, disclosed $10 billion in profits for the first three quarters of 2025, outpacing Bank of America's $8.9 billion net income during the same period, the Crypto.News recap noted. The figures highlight the growing profitability of stablecoin operations amid heightened regulatory scrutiny.