Balancer Labs to wind down amid $110M exploit; DAO to take control as co-founder unveils broad overhaul

Balancer Labs will shut down, co-founder Fernando Martinelli announced in a post to the community, saying the corporate entity has become a liability following a damaging exploit and related legal risks ^{[1] [2]}.

Martinelli said the team weighed winding down the entire protocol but opted instead to restructure and give the project another chance, citing the November 2025 exploit as a key factor in the decision; reporting places the exploit’s impact at roughly $110 million and notes heightened legal exposure for the company ^{[1] [2]}.

The proposed path forward transfers control to the Balancer DAO and includes a broad overhaul plan — targets mentioned by Martinelli and covered in reporting include a move toward ‘zero emissions,’ fee restructuring, and a BAL token buyback intended to offer holders an orderly exit or value adjustment ^{[3] [4] [2]}.

The immediate corporate shutdown will hand responsibility for the protocol’s future to the DAO while the team pursues governance and economic changes outlined in the restructuring plan ^{[4] [3]}.