Decentralized Exchange Bunni Shuts Down After $8.4M Hack – Here’s What Happened

Bunni shuts down operations after an $8.4M hack, struggling with financial constraints.

Fridah Kangai
October 24, 2025
1:30 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Bunni shuts down after $8.4M hack – financial struggle revealed.
Assets will be distributed to token holders after Bunni’s closure.
Bunni offers 10% bounty for returning stolen funds, no response yet.

Bunni, a decentralized exchange, has decided to shut down operations after a devastating $8.4 million exploit. According to the team, the hack has halted the platform’s growth, and securing a relaunch would require substantial capital that they currently do not possess. According to the team, audit and monitoring costs would be in the six or seven-figure range, which is way out of their financial capabilities.

The exploit occurred last month, when hackers exploited a rounding error in the smart contract’s withdrawal functionality. This weakness enabled them to drain large amounts of funds, culminating in a loss of $8.4 million.

Bunni also affirmed that customers could still withdraw their money from the platform, although this functionality would come to an end. The team also stated that it would distribute the remaining treasury assets to the holders of BUNNI, LIT, and veBUNNI, pending legal approval.

Hello everyone, it is with saddened hearts that we announce the shutdown of Bunni.

The recent exploit has forced Bunni's growth to a halt, and in order to securely relaunch we'd need to pay 6-7 figures in audit & monitoring expenses alone – requiring capital that we simply don't…
— Bunni (@bunni_xyz) October 23, 2025

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Platform Struggles with Financial Constraints

The decision to close the exchange was reached after the team realized that the exchange was under financial pressure. Bunni would require months of business development and a high amount of funds to safely relaunch, which they cannot afford at the moment.

The team estimated that the costs of audits and monitoring alone would be in the range of six to seven figures, which would put the project’s survival at risk.

Bunni chose to re-license its V2 smart contracts under the more liberal MIT license as it closed the doors. Other developers are free to develop their innovations, such as functions of liquidity distribution, surge fees, and autonomous rebalancing mechanisms, with the aim of this decision. This could sustain the platform’s technology through contributions from the community.

Moreover, Bunni is also collaborating with the police to reclaim the stolen properties. Nevertheless, the stolen money has already been laundered using Tornado Cash. Bunni has also offered the attacker a 10 percent bounty in exchange for repaying the outstanding amount, but there has been no response.

The shutdown is a notable event in Bunni’s life, yet its open-source code can serve as an inspiration for the future.

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