Bunni DEX Shuts Down After $8.4 Million Hack
- Decentralized exchange Bunni is permanently closing after a flash loan exploit drained $8.4 million.
- The hack exploited the Liquidity Density Function on pools including weETH/ETH and USDC/USDT on Ethereum.
- Stolen funds remain unmoved in Tornado Cash-funded wallets, complicating recovery efforts.
- Users can withdraw assets, and remaining treasury will be distributed to token holders.
- Bunni’s v2 contracts are relicensed from BUSL to MIT to benefit the broader DeFi ecosystem.
Following an exploit that drained $8.4 million through flash loan manipulation, Bunni has announced its permanent closure due to insurmountable recovery costs and lack of capital for a secure relaunch.
The exchange plans to distribute remaining treasury assets to its token holders while working with law enforcement for asset recovery, highlighting the need for rigorous testing in custom liquidity logic within DeFi platforms.Source
