Balancer Hacker Exposed: AI Debug Logs Reveal $116M DeFi Breach

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1 day ago

AI Debug Logs Reveal Balancer Hacker May Have Used ChatGPT Code

Could artificial intelligence have helped a hacker steal millions from one of DeFi's biggest platforms? The Balancer Hacker has shocked the crypto world once more, but this time not just for the money stolen.

New clues suggest that the attacker may have used AI tools to write the exploit code that drained over $116 million from the platform.

Debug Logs Point Toward AI-Generated Code

Blockchain researcher @AdiFlips had a surprise when studying the Hack. The attacker's code had something odd: console.log debugging messages left inside. These tiny lines, like "Done with amts1," don't usually appear in a professional attack script. Instead, they look like traces from AI-generated code.

Balancer Hacker Exposed in Debug

Source: X (formerly Twitter)

He said that good hackers almost never leave debug notes in on-chain code because that can show how the attack was made. Many speculated that the Balancer Hacker must have utilized an AI model, such as ChatGPT , to write or at least edit portions of the attack code. It's a surprising turn of events in the story-AI used not to protect, but to hack.

Millions Drained from Balancer's V2 Vault

The hack began when blockchain trackers Nansen and Lookonchain noticed unusual movements in platform’s smart contracts. Within hours, around $70.9 million in crypto, including WETH, osETH, and wstETH, was stolen. Later reports showed the total loss jumped to over $116 million.

Balancer Hack Lookonchain Update

Source: Lookonchain

Now, new updates from Lookonchain reveal that the Balancer Hacker has begun swapping the stolen assets for ETH, most probably in an attempt to obfuscate the funds through various wallets. So far, Balancer has not released any public statement or plan for recovering the lost funds.

How the Hacker Exploited the System

According to experts, the attack used a vulnerability in Balancer's V2 Vault-a system responsible for managing funds from many pools.

The bug was within a function called manageUserBalance, which was letting unauthorized withdrawals with weak validation checks. Since the Balancer vault connects multiple chains, once the bug was triggered, it led to instant draining of funds from many pools.

This wasn't a stolen password or key incident; it was a smart contract bug-one of those things that can still occur even after audits.

It's a painful reminder that even in trusted DeFi projects there can be unseen weaknesses.

Fear and Anger in the DeFi Community

The news of the Balancer Hack quickly went viral on social media. Many rushed to pull out their funds while criticizing the team for staying silent. Security experts called on other projects to pause any connection with the defi platform until everything is reviewed.

The community is frustrated due to this crypto hack. They have seen too many DeFi platforms fall to similar attacks. And now, with signs that the Balancer Hacker used AI tools, many are worried that future hacks could become even easier.

A Wake-Up Call for DeFi Security

The Balancer Hack showcases just how fragile a DeFi system can be: one tiny bug, or one careless mistake, wipes millions off.

Experts maintain that projects need to run audits, set up emergency switches, and review every bit of their smart contracts.

For users, the incident is another call for vigilance. Even strong DeFi representatives can suffer from such attacks. As to the bizarre AI traces left by the Hacker, those may well teach an absolutely new lesson to the whole industry: in crypto, even machines sometimes make human mistakes.

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