Balancer, an Ethereum-based decentralized exchange, has potentially faced a significant exploit, with over $128.6 million drained from its vaults. Blockchain security firm Peckshield reported unusual asset transfers from Balancer’s address to an external wallet. The withdrawals included approximately 6,587 WETH (worth $24.5 million), 6,851 osETH ($26.9 million), and 4,260 wstETH (~$19.3 million). Following these events, Balancer confirmed awareness of the issue and stated that their engineering and security teams are investigating. Mikko Ohtamaa, CEO of Trading Strategy, indicated that the problem may stem from a faulty smart contract check. He cautioned that losses could exceed $100 million if older V2 forks of Balancer exhibit the same vulnerability. The attack is reportedly ongoing across various chains where Balancer operates. Amid this turmoil, a whale who had not interacted with the platform for over three years withdrew their entire $6.5 million balance. The incident has led to a decline in the price of Balancer’s native token, BAL, which fell by over 4%.