Balancer Exploit and Multiple Hacks Push November Crypto Losses to $127M
Blockchain security firm CertiK reported about $127 million in net crypto losses in November 2024 after recoveries, with gross losses exceeding $172 million. The month was dominated by a Balancer liquidity-pool exploit that drained roughly $113 million and cascaded through Ethereum-linked DeFi and Layer-2 protocols. CertiK logged 53 incidents in November; DeFi bore the largest share of losses (≈$134M). Notable non-DeFi incidents included a South Korean exchange Upbit hot‑wallet hack (~$29.8–37M) reportedly linked to the Lazarus Group, plus smaller losses at projects such as Beets and Gana Payment. CertiK attributes most losses to smart‑contract/code vulnerabilities (the majority of the $130M+ figure), with wallet compromises contributing materially. Improved coordination among exchanges, blockchain analytics firms and law enforcement enabled roughly $45M to be frozen or recovered. For traders: expect elevated volatility in tokens tied to exploited protocols and related DeFi/Layer‑2 markets; prioritise monitoring smart‑contract audit statuses, on‑chain freezes, and exchange custody developments. Primary keywords: Balancer exploit, crypto losses, DeFi exploit, Upbit hack, CertiK report.
Bearish
The Balancer exploit and multiple large hacks increase downside risk for the directly affected tokens and the broader DeFi sector. In the short term, tokens tied to exploited protocols typically face sharp sell pressure, delistings, and reduced liquidity as investors withdraw capital and market makers widen spreads. The Upbit hot‑wallet hack adds exchange custody risk, which can depress confidence and trading volumes for impacted assets. Partial recoveries and asset freezes limit ultimate losses but do not immediately restore market sentiment. Over the medium term, repeated large losses emphasise protocol risk and may lead traders to demand higher risk premia for DeFi exposure, slowing inflows and keeping price pressure on related tokens. Some neutralising factors — improved coordination among exchanges, analytics firms and law enforcement, plus any rapid on‑chain recoveries and clear remediation/audits — can mitigate downside over weeks to months. Overall, expect acute short‑term bearish pressure on tokens directly involved and broader cautious sentiment across DeFi until audits, fixes and custody assurances reduce perceived protocol risk.