Bunni DEX, a decentralized exchange known for providing users with liquidity, has announced today that is shutting down operations following a major exploit in September that drained over $8.4 million from user funds.
According to the previous reports, the hack targeted the exchanges Ethereum and Unichain smart contracts after taking advantage of a flaw in the Liquidity Distribution Function which allowed the attackers to withdraw more assets than they were entitled to through flash loan manipulation and rounding errors.
The team announced that this shutdown would cost the firm’s growth and that restarting safely would cost six to seven figures in audits and monitoring which they cannot afford.
“Hello everyone, it is with saddened hearts that we announce the shutdown of Bunni,” the team wrote. They also explained that months of work and business effort would also be needed to restore the platform, but currently, these resources are unavailable.
The exploit drained mostly USDC and USDT before the team froze contract operations. A 10% bounty was offered to recover the funds, but the attacker never responded. Audits by Trail of Bits and Cyfrin had taken place earlier, but the flaw was classified as a “logic-level” issue rather than an implementation error.
Since the hack, Bunni’s total value locked has fallen from over $60 million to nearly zero. Trading and development activity stopped completely, leaving the platform inactive.
However, users can still withdraw assets through the Bunni website until further notice. The team also plans to give the remaining treasury assets to BUNNI, LIT, and veBUNNI holders after a legal process is completed. Team members are excluded from this distribution.
In addition to this, Bunni also changed the license of its v2 smart contracts from BUSL to MIT. This means other developers can now use Bunni’s ideas, like LDFs, surge fees, and automatic rebalancing, for free. The team said they are still working with law enforcement to try to get the stolen funds back.The shutdown adds to the difficult year for blockchain security, which has seen over $3.1 billion lost to hacks and exploits in 2025, according to Hacken’s report.
