The decentralized Bunni crypto exchange has stopped its work, citing lack of funds to pay off financial losses and restore working capacity after a recent hack.
The Bunni hack occurred on September 2 and affected two liquidity pools: USDC/USDT on the Ethereum network and ETH/weETH on Unichain. According to Hacken, an unknown individual exploited a rounding error in the smart contract’s withdrawal function to reduce the liquidity of the pools by 84% through a series of small transactions. This allowed the attacker to conduct a sandwich attack and steal $8.4 million by manipulating prices.
The project team reported that the stolen assets were laundered through the Tornado Cash mixer, and an attempt to negotiate with the hacker for the return of the stolen funds with a 10% settlement was unsuccessful. The team decided to shut down Bunni and close the project.
“The recent vulnerability has halted the growth of Bunni, and to safely relaunch the crypto platform, we will need to spend a significant amount of money on audits and monitoring, which requires capital that we simply do not have. In addition, it will take months of development and BD projects to return Bunni to its pre-exploit state, which we cannot afford. Therefore, we have decided to close Bunni,” the exchange team announced.
The crypto exchange’s clients have been granted the right to withdraw their assets until further notice, and the remaining funds of the project’s treasury will be distributed among the holders of BUNNI, LIT, and veBUNNI tokens.
The day before, the creators of the Kadena hybrid blockchain, which uses smart contracts based on proof of work (Proof-of-Work consensus), announced the termination of all operations and development due to unfavorable market conditions.
