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Bunni announces shutdown months after major hack
Crypto industry gets hit with a second shutdown in just over 24 hours. Decentralized liquidity protocol Bunni has announced its permanent shutdown following a recent exploit that halted its growth.
In a post shared on X, on Oct. 22, the team said that recovering from the incident would require six to seven-figure audit and monitoring costs, funds the project does not have.
The team said relaunching the protocol would take “months of development and business development effort," a commitment they cannot sustain given current conditions.
Users can still withdraw assets
Despite the closure, Bunni confirmed that users can still withdraw assets through the platform’s website “until further notice.” The project also intends to distribute its remaining treasury assets to holders of BUNNI, LIT, and veBUNNI tokens. Team members will be excluded from this distribution, which will take place following the completion of a legal validation process.
As part of its wind-down, Bunni has relicensed its version 2 smart contracts from the Business Source License (BUSL) to the more permissive MIT license, allowing developers to freely use its innovations — including its Liquidity Distribution Functions (LDFs), surge fees, and autonomous rebalancing mechanisms.
Bunni also confirmed that it is cooperating with law enforcement to recover the funds lost in the exploit.
What happened to Bunni?
Bunni was a decentralized exchange built on top of Uniswap v3, aimed to automate and optimize yield for liquidity providers (LPs) by issuing fungible ERC-20 tokens representing concentrated liquidity positions.
On Sept. 2, Bunni informed on X that they had detected a hacking attempt, following which they paused all smart contract functions on all networks.
Attackers stole Ethereum, USDC, and USDT via their layer-2 Unichain and the Ethereum network. Bunni lost about $8.4 million to hackers.
Second shutdown in 24 hours
Bunni's announcement to cease operations comes just a day after another major crypto firm shut its doors permanently. On Oct. 21, blockchain firm Kadena revealed that it would “no longer be able to continue business operations,” immediately halting all activity and maintenance of its network. Kadena blamed the closure on worsening market conditions, adding that it had notified employees and would keep a small team in place to manage the transition and wind-down process.
This article has been published in thestreet.com via Yahoo News.
Popular crypto exchange shuts down a month after major hack
Crypto industry gets hit with a second shutdown in just over 24 hours. Decentralized liquidity protocol Bunni has announced its permanent shutdown following a recent exploit that halted its growth. In a post shared on X, on Oct. 22, the team said that recovering from the incident would ...
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