Coinspeaker
13 hour ago
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Gnosis Chain Warns Validators of Penalties After Balancer Hack Recovery

Gnosis Chain executed a governance-approved hard fork on December 22 to recover approximately $9.4 million in frozen funds from the Balancer hack.

  • The funds were initially frozen following a validators-approved soft fork in November 2025.
  • Gnosis node operators had ten days to upgrade and execute the hard fork for fund recovery.
  • The official Gnosis account warned remaining validators to upgrade their nodes to avoid penalties, which could include loss of staking rewards or slashing.

Balance hack: hard fork proposal

Divided Reactions

  • The decision has sparked debate among stakeholders; some praise the transparency, while others criticize it as a breach of immutability.
  • Ignas DeFi raised concerns about setting precedents for future hard forks, questioning if similar actions will be taken for other hacks.

The Balance V2 Hack and Gnosis

  • The exploit affected multiple chains, including Gnosis, and drained around $128 million across various pools.
  • Harry Donnelly noted that the incident serves as a serious warning for the DeFi ecosystem regarding security risks.