Bunni DEX Sunsets Operations Following Devastating $8.4M Security Breach

Bunni DEX, a decentralized exchange using Uniswap v4, has shut down its operations nearly two months after an $8.4 million security breach. The attack drained liquidity pools on Ethereum and Unichain, forcing the team to pause all smart contract functions immediately.

The Bunni team shared the news on X to protect users and investigate the issue. The breach, one of the largest in 2025, drastically cut Bunni’s total value locked, damaging trust in the DeFi protocol.

What Happened?

On September 2, 2025, attackers stole $2.4 million from Ethereum and $6 million from Unichain pools. The stolen assets, mostly USDC and USDT, were linked to two Ethereum wallets through Across Protocol. Bunni’s team paused all smart contract operations on supported chains, including Arbitrum and BNB Chain, to prevent further loss. 

The team’s quick action reduced losses but disrupted platform functions. Security firms BlockSec and CertiK quickly identified the breach, helping to contain the damage. Bunni’s total value locked dropped from $80 million to just over $50 million. Additionally, CoinGecko data reveals the BUNNI token fell 36.8% in the past hour, showing market concern. 

Grim Announcement and Cushion Measures

In response, the Bunni team took to its official X handle to acknowledge the impact of the breach.

“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 have. It’d also take months of development & BD effort just to get Bunni back to where it was before the exploit, which we cannot afford. Thus, we have decided it’s best to shut down Bunni,” the announcement stated.

The team assured that users can currently withdraw their assets through the Bunni website. Additionally, they plan to distribute remaining treasury assets to holders of BUNNI, LIT, and veBUNNI tokens, with specifics pending legal review. The team is also collaborating with law enforcement to recover stolen funds and will keep the community informed on progress.

Meanwhile, the Bunni DEX breach is just part of a series of cases in 2025 that have forced platforms to shut down suddenly. Just yesterday, the firm overseeing Kadena, a layer-1 blockchain, announced it will discontinue operations and stop maintaining the network, citing unfavorable market conditions. Following the news, its native token, KDA, dropped by over 60%.

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