Balancer Labs shuts down after $110M hack, protocol to restructure with fee changes and token buyback

Balancer Labs, the company behind the Balancer decentralized exchange, is shutting down due to legal and financial issues following a $110 million exploit in 2025. Despite the shutdown, the Balancer protocol will continue operating in a leaner form with zero BAL token emissions, a restructuring of fees to benefit the DAO treasury fully, and a BAL token buyback to offer holders a fair exit. The total value locked in the protocol has dropped 95% from its peak, prompting a focus on core products and expansion to non-EVM chains. The co-founder Fernando Martinelli will step back but may advise the project going forward.