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CryptoMediumUpdated×3•Originally published 24 March 2026•Updated 24 March 2026•

1 min read

Balancer Labs to Shut Down Amid Legal Pressure, Shifting to Lean Protocol Model

Digital illustration of cryptocurrency market downturn with a large Ethereum coin, Bitcoin and Solana logos, multiple charts showing losses, a red downward arrow, and scattered crypto coins.

Key Facts

1Balancer Labs, the corporate entity behind the Balancer protocol, is winding down its operations.

2 months ago

Version History

11 additional sources confirmed this story

Version 32 months ago

What changed: Added the specific exploit date (Nov 3, 2025) and details regarding the transition to a Foundation and service-provider model due to the lack of corporate revenue.

Version 22 months ago

What changed: The update adds details on co-founder Fernando Martinelli's decision to restructure rather than shut down, the DAO's shift toward zero emissions, and the introduction of a BAL token buyback program.

Version 12 months ago

What changed: Added the official closure date of March 24, clarified the timeline of the security hack, and noted the protocol's continuation under new management.

Balancer Labs officially closed its doors on March 24 following a significant security exploit on November 3, 2025, which resulted in a $128 million loss. Co-founder Fernando Martinelli revealed that the corporate entity became unsustainable due to a lack of revenue, prompting a shift toward a new organizational structure. The protocol will now transition to a model involving a Foundation and independent service providers, moving away from the traditional corporate framework. Under this direction, the Balancer DAO is targeting zero emissions and a comprehensive restructuring of protocol fees to ensure long-term sustainability. To support token holders during this transition, a BAL token buyback program is planned to offer a 'fair exit' for those wishing to divest. These strategic shifts aim to reduce corporate liability while maintaining decentralized exchange (DEX) operations through the new decentralized governance model.