GM. Balancer suffered a major exploit draining over $128 million from its Ethereum vaults, triggering cascading impacts across DeFi and forcing Berachain to halt its network.

Meanwhile, Trump defended his Changpeng Zhao (CZ) pardon on 60 Minutes, and Hong Kong opened its crypto exchanges to global liquidity under new SFC rules.

Here’s what’s shaking DeFi, politics, and policy across the markets. 👇

Balancer Exploit Drains $128 Million From DeFi Vaults

Decentralized exchange Balancer has suffered a suspected exploit draining roughly $128.6 million in assets from its Ethereum-based vaults early Monday. Blockchain security firm PeckShield first identified the breach, citing large withdrawals of WETH, osETH, and wstETH from Balancer’s core contract addresses.

Etherscan logs show multiple transfers from Balancer’s “0xBA1...BF2C8” address to an external wallet, moving over $70 million in ether derivatives alone. The Balancer team confirmed awareness of “a potential exploit impacting v2 pools” and said engineering units are investigating with priority.

Analysts at Trading Strategy attributed the incident to a faulty smart contract validation check, possibly affecting older v2 forks across several chains. PeckShield reported the attack remains active, warning that cumulative losses could escalate beyond $100 million as vulnerabilities propagate.

Balancer’s total value locked on Ethereum stands near $350 million, making it one of DeFi’s largest liquidity protocols. Following reports of the exploit, its native BAL token fell over 4%, while some whale accounts withdrew dormant multi-million-dollar holdings within minutes.

Berachain Freezes Network After Balancer Incidend

Berachain validators temporarily halted block production to conduct an emergency hard fork following a $128 million Balancer exploit. The incident targeted Berachain Exchange’s liquidity pools, primarily affecting the Ethena and Honey tripool through a complex smart-contract vulnerability. Developers said the rollback process aims to restore all impacted funds while reinforcing future protocol security standards.

Chief executive Smokey The Bera said halting the network was necessary to safeguard user deposits at immediate risk. Community analysts largely supported the decision, calling it a pragmatic response to a systemic exploit across multiple chains. Investigators later traced the breach to a faulty access check that allowed false fee credits to trigger withdrawals.

Donald Trump Defends CZ Pardon in 60 Minutes Interview

President Donald Trump defended his pardon of Binance founder Changpeng Zhao, saying he believed the case was politically motivated. In a CBS 60 Minutes interview, Trump denied personal involvement with Zhao or Binance, describing the prosecution as a “Biden-era witch hunt.” The president said he acted to protect American leadership in digital assets amid rising international competition.

When asked about Binance’s $2 billion stablecoin transaction linked to his family firm World Liberty, Trump dismissed claims of conflict of interest. He said his sons’ business activities were separate from official duties and focused on private enterprise. Lawmakers have since called for ethics reforms and a review of digital asset lobbying tied to the pardon.

Hong Kong Opens Crypto Exchanges to Global Liquidity

Hong Kong’s Securities and Futures Commission will permit licensed crypto exchanges to connect with global liquidity through shared order books. The reform marks a shift from the region’s previous model, which required local pre-funding and domestic settlement of all trades. Regulators said the initiative aims to enhance liquidity, pricing efficiency, and investor access within a tightly supervised framework.

Chief Executive Julia Leung said the new rules balance innovation with market integrity as competition for capital intensifies globally. The SFC also exempted approved tokens from the 12-month trading requirement for professional investors. Officials emphasized that flexible oversight is essential to attract international participants while maintaining Hong Kong’s reputation as a trusted financial hub.

Data of the day

Prediction market Polymarket saw record engagement in October, reaching 477,850 active traders and over $3 billion in volume. Analysts attributed the spike to speculation around a forthcoming POLY token airdrop and revived retail enthusiasm. Platform data showed new markets nearly tripled month over month as users experimented with event-driven liquidity strategies.

Polymarket plans to resume US operations before the end of November after resolving prior regulatory restrictions with the CFTC. The relaunch would mark its formal return to the American market following a 2022 enforcement settlement. Rival Kalshi still leads by trading volume, securing $4.4 billion last month amid new investor interest and ongoing expansion plans.

More breaking news

• Ripple launched a US digital asset prime brokerage after acquiring Hidden Road for $1.25 billion, offering OTC spot trading for XRP, RLUSD, and other tokens.

• Michael Saylor’s Strategy added 397 Bitcoin worth $45 million, bringing total holdings to 641,205 BTC as its buying pace continues to slow.

• Monthly stablecoin volume on Ethereum hit a record $2.82 trillion in October, driven by yield-seeking traders reallocating capital amid broader market pullbacks.

• Nasdaq reprimanded TON Strategy for failing to seek shareholder approval before its $272.7 million Toncoin purchase tied to a controversial PIPE financing deal.

• The European Commission is drafting a December proposal to create a single EU supervisor over crypto and stock exchanges, modeled after the US SEC.

• Zerohash secured an EU MiCA license enabling stablecoin services across 30 EEA countries as Mastercard reportedly eyes a $2 billion acquisition of the firm.

• BitMine acquired 82,353 ETH worth $306 million, raising its holdings to 3.4 million tokens and nearly 2.8% of Ethereum’s total supply.

• Denmark officially withdrew its EU Chat Control proposal after privacy backlash, abandoning plans for mandatory scanning of encrypted messages on major apps.

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