Author(s): MTM
Submission Date: 4 Nov 2025
Summary: We request the governance team to freeze stolen ezETH assets from the Balancer Exploit. This measure seeks to prevent further unauthorized transfers, preserve recoverable funds, and stabilize market confidence. An estimated ~789.7322 ezETH was stolen from the Ethereum network alone.
Overview:
On November 3, 2025, the V2 Protocol experienced a critical security breach affecting the V2 StableSwap contracts. The exploit led to unauthorized withdrawals amounting to roughly $128 million. The two largest ezETH pools that were affected, about ~789.7322 ezETH on Ethereum. Listed below:
-
ezETH / weETH / rswETH
-
Pool: 0x848a5564158d84b8a8fb68ab5d004fae11619a54
-
Total drained: $566k (in USD)
-
-
ezETH / WETH :
-
Pool: 0x596192bb6e41802428ac943d2f1476c1af25cc0e
-
Total drained: $4.82m (in USD)
-
It seems that the attackers have since swapped the ezETH using the KyberSwap Aggregator to for ETH which the majority was routed through Fluid according to the Arkham intelligence platform (https://intel.arkm.com/explorer/entity/balancer-hacker).
Stolen ezETH Swaps can be seen below
https://intel.arkm.com/explorer/tx/0xb0177c5a79fd09dd402bf3fc60517308dedffea4b937084b5cc81f1cb87234eb
Request:
To safeguard the ecosystem, this proposal requests that the Governance team authorize the temporary freezing of affected ezETH assets linked to the exploit either via the attackers wallet and on the Fluid dex which holds the stolen funds, pending a comprehensive forensic audit and coordination with relevant security and legal entities. The freeze will remain in effect until final verification of ownership and transaction legitimacy is complete.
Motivation:
Freezing the compromised funds is essential to:
-
Preserve recoverable assets before they are laundered through additional cross-chain channels.
-
Maintain integrity and trust in the Renzo and broader DeFi ecosystem by demonstrating decisive governance action.
-
Support the security investigation by preventing further obfuscation of transaction trails.
-
Protect legitimate users whose liquidity positions and balances may have been indirectly impacted by the exploit.
This swift intervention aligns with Renzo’s commitment to security, transparency, and responsible governance.
Implementation:
- Immediate Asset Freeze on stolen assets:
Initiate a coordinated freeze across the stolen ezETH, regardless of whether they had been swapped or not. Restricting all outgoing transactions for unstaking associated with flagged wallets.
- Forensic Coordination:
Allow the Renzo team to work with the Balancer team, Fluid Team and any external blockchain analytics partners to validate compromised addresses and assets.
- Recovery & Unfreeze Process:
Following verification, unaffected wallets and legitimate user balances will be reinstated in batches, subject to governance approval.
Voting:
-
Yay: Approve the immediate freezing of ezETH assets associated with the V2 StableSwap exploit and proceed with coordination efforts.
-
Nay: Reject the proposed freeze, allowing stolen asset movements to remain in dexes proceed without restriction.