Elixir has announced that they plan to allow deUSD holders to redeem their tokens for USDC through a process that will also eliminate the risk of Stream Finance cashing out their deUSD without repaying their loan. According to Elixir, "Stream comprised of 99%+ of the lending positions (and has decided to not repay or close positions)".
Elixir shuts down deUSD after Stream Finance halt
After the defi yield platform Stream Finance announced a $93 million loss, Elixir announced it would be discontinuing its deUSD synthetic stablecoin. Stream Finance owes $68 million to Elixir, and holds around $75 million deUSD.
Moonwell accrues almost $3.7 million of bad debt after oracle malfunction
The Moonwell lending protocol, built on the Base Ethereum L2, wound up with $3.7 million in bad debt after an attacker took advantage of an oracle malfunction that caused the price of wrsETH to be massively inflated. The Chainlink oracle used by the project erroneously reported that a single wrsETH token (Kelp DAO's wrapped restaked ETH) was priced at around 1.65 million ETH (~$5.8 billion). Within 30 seconds of the oracle reporting bad data, an attacker took advantage of the error to borrow huge amounts of tokens, which they then swapped to other tokens to cash out.
Ultimately the attacker profited around 295 ETH (~$1 million), but the protocol was saddled with significantly more bad debt that the team will now have to grapple with.
- wrsETH Oracle Malfunction 11/4/25, Moonwell forum
- Tweet by CertiK Alert [archive]
Balancer exploited for at least $110 million
The defi protocol Balancer suffered a major exploit that drained over $110 million across several blockchains, including Ethereum, Polygon, Base, and Sonic. Attackers exploited faulty access control in the
manageUserBalance function of Balancer's v2 smart contract, enabling unauthorized internal withdrawals. The stolen tokens included 6,850 osETH, 6,590 wETH, and 4,260 wstETH, later consolidated into new wallets likely for laundering.The exploit also impacted forked protocols like Beets Finance, which lost around $3 million. Balancer's BAL token dropped over 10% following the theft.
This was Balancer's third major security incident since 2020, despite prior audits by OpenZeppelin and Trail of Bits.
Paxos accidentally mints more than twice the global GDP in PayPal stablecoins
Paxos, the issuer of PayPal's PYUSD stablecoin, accidentally minted 300 trillion of the supposedly dollar-pegged token. For context, this is approximately 2.5x the global GDP, and around 125x the total number of US dollars actually in circulation.
Paxos later announced that the mint was an "internal technical error", and that they had burned the excess tokens.
While PayPal promises its customers that "Reserves are held 100% in US dollar deposits, US treasuries and cash equivalents – meaning that customer funds are available for 1:1 redemption with Paxos," there clearly isn't much in the way of safeguards to ensure that is always the case. As with most stablecoin issuers, Paxos merely issues self-reported and unreviewed portfolio reports, and monthly third-party attestations (not audits) of reserves.
Abracadabra loses more "Magic Internet Money" to third hack in two years
In their third major hack in two years, the Abracadabra defi lending project lost $1.8 million of their Magic Internet Money stablecoin. An attacker took advantage of a bug in the project smart contracts to borrow more than their provided collateral would normally allow. The attack was funded via Tornado Cash, and the exploiter then swapped the stolen tokens for ETH and laundered them back through Tornado.
The project disclosed the theft, describing the exploit as affecting "some deprecated contracts". They downplayed the theft, saying they'd bought back the stolen assets using treasury funds.
Abracadabra previously suffered a $13 million theft in March 2025, and a $6.5 million theft in January 2024.
Griffin AI exploited for $3 million one day after launch
One day after Griffin AI launched its GAIN token on Binance Alpha, an attacker minted 5 billion fake GAIN tokens on the Ethereum blockchain, then exploited a cross-chain endpoint to trick the bridge to the Binance chain into recognizing them as the real thing. The attacker was only able to sell a small fraction of their tokens, but they made off with approximately $3 million as the token plunged in price. According to CEO Oliver Feldmeier, the exploit was enabled by "a misconfigured layer Zero (cross-chain messaging) set-up and compromised key".
Griffin AI promises to allow customers to "build, deploy, and scale autonomous AI agents for crypto finance". These are essentially AI-powered bots that perform various functions — some of Griffin's advertised examples include a "robo-adviser" to provide "tailored investment strategies", and bots to do arbitrage trading or manage staked assets.
Seedify launchpad project suffers bridge exploit
An attacker exploited bridges for SFUND, the token issued by the Seedify launchpad and incubator. It appears the exploiter has profited around $1.7 million from the theft. Seedify issued a statement announcing the theft, and said the bridge contracts that were exploited had been deployed for three years. The SFUND token crashed in price by around 80% before recovering somewhat.
Seedify has been a launchpad for blockchain games, NFT projects, and other web3 products. The team recently has embraced "vibe coding" — a practice in which people rely heavily on AI to generate code.
$41.5 million stolen from SwissBorg in Kiln API exploit
Thieves stole 192,600 SOL (~$41.5 million) from a wallet belonging to the Swiss cryptocurrency exchange SwissBorg. The attack is being blamed on a vulnerability in the API of Kiln, a staking partner used for SwissBorg's "Earn" program.
SwissBorg announced that they would be reimbursing impacted customers using treasury funds, and working with security firms and law enforcement to try to recover the stolen assets.
Bunni decentralized exchange exploited for $8.4 million
The Bunni decentralized exchange was exploited for approximately $8.4 million across the Unichain Ethereum layer 2 network and the Ethereum mainnet. Bunni acknowledged the theft and paused the protocol shortly after the attack.
