Bunni DEX Shuts Down Following $8.4M Hack

Bunni, a decentralized exchange (DEX) built on Uniswap v4, has stopped operations after losing $8.4 million in a recent exploit.

The team behind Bunni said they do not have enough money to safely restart the project.

Bunni Closes Over Lack of Funds

Bunni announced on September 2, 2025, that it had fallen victim to a hack that resulted in the loss of approximately $8.4 million. The attackers exploited a vulnerability in the DEX’s smart contracts related to its Liquidity Distribution Function. This allowed them to manipulate internal calculations and drain funds from liquidity pools on Ethereum.

While initial reports indicated that between $2.3 million and $2.4 million had been stolen on Ethereum, analysis by QuillAudits and Halborn revealed a further $5.9 million was lost on Unichain. The stolen assets included USDC and USDT, which were consolidated into a single wallet.

After the incident, Bunni paused all smart contract activity and advised users to withdraw their funds. The project later revealed via X that restarting the platform would require between six and seven figures in audit and monitoring costs. However, they said they could not afford these expenses, which led them to decide to stop operations. “It is with saddened hearts that we announce the shutdown of Bunni,” wrote the team.

The platform’s users will still be able to withdraw their assets through the official website until further notice. The project also plans to distribute the remaining treasury funds to holders of BUNNI, LIT, and veBUNNI tokens, based on a snapshot that will exclude team members. Additionally, the Bunni v2 smart contracts have been relicensed from BUSL to MIT, making features like surge fees and autonomous rebalancing freely available to its ecosystem.

Efforts to recover the stolen money are ongoing in collaboration with law enforcement. They closed the statement by thanking the community for its continued support throughout their journey.

Back-to-Back DeFi Shutdowns

Bunni is the second DeFi initiative to close in less than 48 hours. The Kadena organization also recently announced the cessation of all its business and development activities due to unfavorable market conditions. According to the official statement, the Kadena blockchain will continue to run independently, maintained by decentralized miners and developers. Meanwhile, its native token, KDA, and protocol infrastructure will remain operational without disruption.

Members of the X crypto community were quick to respond to the latest developments. One user questioned what was happening to the industry, noting how projects were quitting one after the other. In the aftermath of the announcement, KDA’s price dropped by more than 99% from its 2021 peak of $27.64, with analysts claiming its chart showed signs of dumping days before the team informed the public of the closure.

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