Decentralized exchange BunniXYZ has lost $8.4 million in a major liquidity exploit that affected its Ethereum and UniChain networks.
According to a tweet from on-chain security firm Hacken, $6 million was stolen from UniChain and $2.4 million from Ethereum. The UniChain funds were later moved to Ethereum using the Across Protocol.
Blockchain security firm BlockSec confirmed the Ethereum-based smart contracts were exploited and that the stolen funds were sent to the wallet “0xE04…64f2b,” which now holds $1.33 million in USDC and $1.04 million in USDT.
Confirming the tweet, BunniXYZ posted on X that all smart contract activity was paused and the team is investigating. The platform said updates would be shared soon. Meanwhile, a core contributor, @Psaul26ix, warned users to withdraw their funds immediately, saying, “If you have money on [Bunni], remove it ASAP.”
Victor Tran, co-founder of Kyber Network, explained in a tweet that hackers manipulated the LDF by making trades of very specific sizes. This caused Bunni’s rebalancing calculations to fail and let attackers take more tokens than they should. However, Bunni has not confirmed the exact method behind the exploit.
Michael Bentley, co-founder of Euler, advised users to remove funds from Bunni but said the lending protocol is “not affected or at risk.” Euler had a major exploit in 2023 where hackers stole nearly $200 million, most of which was later recovered.
BunniXYZ was founded in February 2025 and is built on Uniswap V4. It allows decentralized trading and uses adaptive pools and incentive tokens to improve returns for liquidity providers. The platform had a cross-chain total value locked of just over $50 million, though it reached above $80 million earlier in August.
This exploit is part of a series of DeFi attacks that show how vulnerable smart contract platforms can be. Security researchers note that careful monitoring and audits are needed to protect investor funds. Users are advised to keep their assets safe until Bunni completes its investigation.
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