Ethereum News Today: DeFi's Trust Crisis Deepens as $70M Balancer Heist Shakes Investor Confidence

Ethereum faces mounting turmoil as a $70.9 million exploit at decentralized finance (DeFi) platform Balancer on November 3, 2025, triggered a sharp selloff in the cryptocurrency. The breach, marking Balancer's third major security incident since 2020, saw attackers drain liquidity pools of 6,850 StakeWise Staked ETH (OSETH), 6,590 Wrapped Ether (WETH), and 4,260 Lido wstETH (wSTETH), according to blockchain analytics and a Bitget report. The stolen assets were swiftly transferred to a new wallet, with no recovery efforts reported to date. This incident has intensified scrutiny on DeFi protocols' security, particularly as Balancer manages over $750 million in total value locked, the Bitget report noted.

The attack coincided with a broader market downturn. Ether (ETH) plummeted as much as 9% on November 3, breaking below the critical $3,600 support level and extending its decline to a 25% drop from its August 22 peak of $4,885, as InvestingLive reported. Analysts attributed the sell-off to a combination of the Balancer exploit and macroeconomic headwinds, including persistent Federal Reserve hawkishness and investor risk aversion. The DeFi sector, already reeling from previous hacks and phishing attacks in 2025, now faces renewed skepticism about its infrastructure resilience, according to the Bitget report.

Balancer's governance token BAL fell over 5% in the wake of the breach, reflecting investor anxiety. Experts have urged users to avoid the platform's liquidity pools until the exploit's root cause—whether a vulnerability in its swap mechanism or pool balance management—is identified, the Bitget report warned. The platform's history of security lapses, including a $1 million stablecoin exploit in October 2025 and a DNS phishing attack in September 2025 that stole $238,000, has eroded trust, the Bitget report added.

The incident underscores the fragility of DeFi protocols, which rely on complex smart contracts susceptible to exploitation. Security firm Cyvers estimated that suspicious activity linked to the breach across multiple blockchains could total $84 million, highlighting the broader systemic risks, per the Bitget report. Meanwhile, the attacker's wallet remains active on Ethereum, with no indication of asset recovery.

As investigations continue, the DeFi community awaits Balancer's response to the breach. The lack of transparency from the platform has fueled concerns about undetected vulnerabilities, leaving investors in limbo. With Ethereum's price volatility persisting and macroeconomic pressures looming, the sector's ability to rebuild trust will be critical to its long-term viability.