Ribbon has announced it will cover $400,000 of the lost funds with its own assets. However, Ribbon is also offering users a lower-than-expected haircut on their assets by assuming that some of the largest affected accounts will not withdraw their assets, having been dormant for several years. While this plan may benefit active users, it seems like it could get very messy if those dormant users do wish to withdraw their assets and discover they've been used to pay others.
Ribbon Finance suffers $2.7 million exploit, plans to use "dormant" users' funds to repay active users
Ribbon Finance, which has partially rebranded to Aevo, has lost $2.7 million after attackers exploited a vulnerability in the smart contract for legacy Ribbon vaults that enabled them to manipulate oracle prices and withdraw a large amount of ETH and USDC.
Prysm consensus client bug causes Ethereum validators to lose over $1 million
Ethereum validators running the Prysm consensus client lost around 382 ETH ($1.18 million) after a bug resulted in delays that caused validators to miss blocks and attestations. Though the bug had been introduced around a month prior, it did not affect validators until Ethereum completed its "Fusaka" network update on December 3. Around 19% of Ethereum validators use the Prysm consensus client, which is developed by Offchain Labs.
- "Fusaka Mainnet Prysm Incident", Prysm
- Client Distribution, Clientdiversity.org
Yearn Finance hacked for the third time
Yearn Finance, a defi yield protocol, has suffered another hack. The exploiter took advantage of bugs in the project's smart contract to drain assets from several of its pools by minting a huge number of yETH tokens and then withdrawing the corresponding asset in the pools.
$2.4 million of the stolen assets, which were denominated in pxETH, a liquid staking token issued by Redacted Cartel, were recovered after the issuer burned the stolen tokens and reissued them to the team's wallet — essentially, removing the tokens from the hacker's wallet. However, the hacker routed the remaining funds through the Tornado Cash cryptocurrency mixer, which makes recovery substantially more challenging.
This is the third time Yearn Finance has been hacked, following an $11 million exploit in 2023 and another $11 million exploit in 2021. Yearn also suffered around $1.4 million in losses in 2023 in connection to the Euler Finance attack.
Upbit hacked for $30 million
The Korean cryptocurrency exchange Upbit suffered a loss of around $30 million in various Solana-based assets due to a hack. Some entities have suggested that Lazarus, a North Korean state-sponsored cybercrime group, was behind the hack.
Upbit reimbursed users who had lost funds from company reserves. The exchange was able to freeze around $1.77 million of the stolen assets.
This theft occurred exactly six years after Upbit suffered a theft of 342,000 ETH (priced at around $50 million at the time).
Aerodrome and Velodrome suffer website takeovers, again
Attackers redirected users intending to visit the websites for the decentralized exchanges Aerodrome and Velodrome to their own fraudulent versions using DNS hijacking, after taking control of the websites' domains. The platforms urged users not to visit the websites as they worked to regain control.
This is the second time such an attack has happened to these same platforms, with another DNS hijacking incident occurring almost exactly two years ago. In that instance, users lost around $100,000 when submitting transactions via the scam websites.
Cardano founder calls the FBI on a user who says his AI mistake caused a chainsplit
On November 21, the Cardano blockchain suffered a major chainsplit after someone created a transaction that exploited an old bug in Cardano node software, causing the chain to split. The person who submitted the transaction fessed up on Twitter, writing, "It started off as a 'let's see if I can reproduce the bad transaction' personal challenge and then I was dumb enough to rely on AI's instructions on how to block all traffic in/out of my Linux server without properly testing it on testnet first, and then watched in horror as the last block time on explorers froze."
Charles Hoskinson, the founder of Cardano, responded with a tweet boasting about how quickly the chain recovered from the catastrophic split, then accused the person of acting maliciously. "It was absolutely personal", Hoskinson wrote, adding that the person's public version of events was merely him "trying to walk it back because he knows the FBI is already involved". Hoskinson added, "There was a premeditated attack from a disgruntled [single pool operator] who spent months in the Fake Fred discord actively looking at ways to harm the brand and reputation of IOG. He targeted my personal pool and it resulted in disruption of the entire cardano network."
Hoskinson's decision to involve the FBI horrified some onlookers, including one other engineer at the company who publicly quit after the incident. They wrote, "I've fucked up pen testing in a major way once. I've seen my colleagues do the same. I didn't realize there was a risk of getting raided by the authorities because of that + saying mean things on the Internet."
GANA Payment hacked for $3.1 million
An attacker stole approximately $3.1 million from the BNB chain-based GANA Payment project. The thief laundered about $1 million of the stolen funds through Tornado Cash shortly after. The attacker was able transfer ownership of the GANA contract to themselves, possibly after a private key leak.
The theft was first observed by crypto sleuth zachxbt. Not long after, the project acknowledged on its Twitter account that "GANA's interaction contract has been targeted by an external attack, resulting in unauthorized asset theft."
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]
Stream Finance halts activity after $93 million loss
The Stream Finance defi yield project announced that "an external fund manager overseeing Stream funds disclosed the loss of approximately $93 million in Stream fund assets." Stream announced that they were in the process of withdrawing remaining liquid assets, and had halted all deposits or withdrawals. They also announced they had retained a law firm to investigate the "incident".
The project didn't disclose who the fund manager was, or the circumstances in which the "loss" occurred.
The Staked Stream USD token depegged on November 3, and crashed further following the announcement.
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.