In their announcement, the team said: “The recent incident halted our growth, and safely restarting would require six- to seven-figure costs for audits and monitoring, which we do not have.” This adds another closure to the recent wave of shutdowns in the DeFi sector.

DeFi Security in Focus After $8.4 Million Exploit

Bunni DEX was built on the Uniswap v4 infrastructure and used a custom Liquidity Distribution Function to optimize returns for liquidity providers. However, the September attack affected both the Ethereum mainnet and the Layer 2 UniChain network, resulting in total losses of $8.4 million.

Following the exploit, the platform’s Total Value Locked (TVL) fell from $80 million to nearly zero within just two months. The team paused all smart contract functions and announced that users could withdraw their assets via the website. Remaining treasury assets will be distributed to BUNNI, LIT, and veBUNNI token holders once legal procedures are completed.

Smart Contracts Made Open-Source Under MIT License

Despite shutting down, the Bunni team took a noteworthy step by transferring its v2 smart contracts from the Business Source License (BUSL) to the MIT license. This change allows developers to access all features previously created by Bunni, including liquidity distribution functions, volatility fees, and autonomous rebalancing systems.

This move ensures that even after the project’s closure, Bunni continues to contribute to the DeFi ecosystem. Experts suggest that the open-source MIT license may inspire the development of safer and more transparent decentralized exchanges in the future.

Chain of Closures in the DeFi Ecosystem

The closure of Bunni DEX came shortly after Kadena announced the termination of its operations the same week. This highlights the ongoing impact of the crypto winter and the significant challenges DeFi projects face in maintaining sustainability.

Experts emphasize that these recent events have shaken investor confidence, making security audits, capital management, and risk controls more critical than ever for decentralized finance projects.

Conclusion

The closure of Bunni DEX is more than just the loss of a single project—it serves as a warning for the DeFi ecosystem. Innovative platforms may offer high returns, but security vulnerabilities and a lack of sustainable funding create the weakest link in the ecosystem.

The decision to make Bunni’s code open-source under the MIT license leaves a positive legacy for the sector. However, the financial losses underscore the need for stricter regulatory and auditing processes for decentralized finance projects in the future.

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The post Bunni DEX Shuts Down After $8.4 Million Security Breach appeared first on Coin Engineer.

Support Agents Allegedly Bribed, Millions Affected

In a lawsuit filed on May 16 in a New York federal court, plaintiff Paul Bender alleged that Coinbase failed to protect user data during a serious breach. The incident, which began on May 11, involved cybercriminals bribing support agents to gain access to internal systems.

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The stolen data included names, addresses, phone numbers, emails, the last four digits of Social Security numbers, bank details, driver’s licenses, passports, and account data like balances and transaction history. The attackers reportedly demanded a $20 million ransom, which Coinbase refused to pay.

At Least Six Lawsuits Allege Negligence, Delayed Response

Between May 15 and 16, at least six lawsuits were filed against Coinbase. Plaintiffs allege the exchange failed to maintain proper security measures, delayed informing users, and offered no meaningful steps to mitigate harm.

One California-based lawsuit demands Coinbase delete all sensitive data and hire independent auditors to evaluate its systems. Another suit added a claim of unjust enrichment, arguing that Coinbase underinvested in data security to boost profits.

In a filing with the U.S. Securities and Exchange Commission (SEC), Coinbase estimated potential reimbursement costs to range between $180 million and $400 million. The company has pledged to compensate users who were tricked into sending crypto due to phishing scams linked to the data breach.

Following the news, Coinbase (COIN) shares initially dropped 7% to $244, but recovered with a 9% gain, closing at $266 on May 16.

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The post Coinbase Faces Legal Firestorm After Massive Customer Data Breach appeared first on Coin Engineer.

As one of the leading cryptocurrency exchanges, Bybit has been at the center of a major security crisis. Company officials stated that a serious technical collapse in the exchange’s infrastructure allowed hackers to infiltrate the system. This vulnerability compromised Bybit’s security mechanisms, enabling attackers to steal $1.5 billion worth of assets.

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How Did the Attack Happen?

According to Bybit’s report, attackers identified security loopholes within the infrastructure and exploited them to gain unauthorized access. Initially appearing as a user account breach, the attack was later revealed to have directly targeted the company’s internal systems. Hackers managed to transfer massive amounts of funds to their own wallets by taking advantage of these weaknesses.

Are Bybit Users at Risk?

Following the large-scale attack, Bybit assured users that their funds would remain secure. The company announced that most of the stolen assets would be covered from its reserves and that user losses would be reimbursed. However, some analysts have raised concerns about how Bybit will manage such a significant financial hit in the long run.

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The post Massive Bybit Hack: $1.5 Billion Loss Explained! appeared first on Coin Engineer.

Popular crypto portfolio tracking app CoinStats has reported a security breach. The breach impacted wallets created directly within the CoinStats app, and some iOS users received phishing notifications.

According to the company, approximately 1.3% of CoinStats wallets were affected, representing a total of 1,590 wallets. Users are being asked to immediately use their exported private keys to transfer funds as a precaution.

It May Attract Your Attention: FTX Has Made a New Altcoin Transfer

In the hack incident, a wallet belonging to Blurr.eth was compromised. The hacker managed to steal 3,657 MKR worth $8.7 million and sold it for 2,482 ETH on-chain.

-This theft had a significant impact on the market and caused the price of the MKR altcoin to drop from $2.462 to $2.280, representing a 7% drop in the short term.

Despite the partial recovery following the sudden drop, the MKR price has not been able to reach its pre-hack level. At the time of writing, the MKR price is trading at $2.390.

The post Another Crypto Platform Suffers Hack, Altcoin Price Plummets appeared first on Coin Engineer.