Security Breach in Bunni Protocol Leads to $2.3 Million Loss

• Lyla Velez
• September 14, 2025
• News
• 0 Comments

A major security flaw in the Bunni Protocol identified by BlockSec Phalcon has resulted in the loss of approximately $2.3 million in Ethereum assets. The breach centered around Bunni’s smart contract function sweepToken().

The event underscores the critical importance of robust security in DeFi. Immediate declines in token and liquidity pool values observed. Investigations are underway.

A major security exploit in the Bunni Protocol has led to a significant loss of assets, primarily Ethereum. BlockSec Phalcon identified the vulnerability, relating it to the sweepToken() function previously marked as a risk.

The Bunni team has taken the precautionary step of pausing all smart contract functions across networks. The breach has raised concerns about the team’s previous security measures and audit responses. As noted by BlockSec Phalcon Team, “Our real-time mempool imaging has identified suspicious withdrawals linked to the ongoing exploit, which drained significant assets.”

Immediate effects include volatility in the Bunni token’s market price and liquidity pools. Users have reported issues with withdrawals, affecting the platform’s total value locked (TVL) and staking flows.

The breach potentially impacts financial stability, with the immediate task being the security investigation and implementation of stronger measures. Regulatory responses are awaited, as they could determine future DeFi security standards.

The event points to possible improvements in security protocols and greater scrutiny of smart contract functions. Previous trends show that successful responses to such incidents often lead to tighter regulations and better user protections. According to the Bunni Protocol Team, “The Bunni app has been affected by a security exploit. As a precaution, we have paused all smart contract functions on all networks. Our team is actively investigating and will provide updates soon.”