The foundation acknowledged that white hackers, ethical security researchers, worked directly with them to recover the funds. The chain is now back up and running and normal operations are gradually resuming.
This incident shook the trust of the entire Verachain community and highlighted both the risks and resilience of DeFi. The team is now preparing a plan to recover funds and restore affected accounts, and Berachain is rebuilding trust. This project turns the crisis into a case study in transparency and security response.
Funds returned and operations resumed
The foundation announced that while BEX (Verachain Exchange) remains partially restricted, HONEY’s ability to redeem mints has not been suspended. Swaps, deposits, and withdrawals remain suspended as a safety precaution while the root cause of the exploit is investigated.
More than 1,000 depositors are affected in various liquidity pools, such as iBERA, and fewer in others, such as USDe. The team is currently developing a system to track all affected wallets and accurately redistribute recovered assets. The team has temporarily disabled withdrawals for users whose deposits are not directly abused. They took this step to prevent further risk until they fully understand the potential balancer vulnerabilities.
We are pleased to confirm that all funds from the BEX/Balancer v2 exploit (approximately $12.8 million) have been returned to the Berachain Foundation Deployer (the chain is now live).
We would like to thank the White Hats for working with us to make this happen. we definitely…
— Bellachain Foundation 🐻⛓ (@berachain) November 4, 2025
“We would like to thank the White Hats for helping make this happen,” the foundation said, confirming that it plans to offer a cash reward to show its gratitude. The team wipes wallets associated with malicious label recovery efforts.
Learn more about Bellachain
Berachain Foundation reported that most of its core partners are ready to resume operations, except for one oracle provider that is still online. Oracles that deliver real-world data to blockchain applications are under significant strain following recent disruptions related to Stream and Elixir. These issues are slowing progress across the ecosystem. The Foundation expects the remaining providers to be operational within hours and will confirm once block production resumes.
Veracore update:
Most of the major partners are ready, except for a single Oracle provider. Oracle providers have been under particular fire over the past 24 hours, given recent issues with Stream/Elixir and the like. They hope to be able to perform live within hours. we…
— Bellachain Foundation 🐻⛓ (@berachain) November 4, 2025
Meanwhile, VeraChain has already verified and received pre-signed transactions from white hats who have recovered the misappropriated BEX funds. These transactions automatically transfer assets to the Foundation’s deployer wallet as soon as block production resumes. This ensures that recovery proceeds without additional action by white hats. The team will update the community as soon as the move is confirmed, marking another important step toward full recovery.
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