Bunni to shut down after $8.4M exploit on Ethereum and Unichain

Bunni, a decentralized exchange built on Uniswap v4, announced on October 23 that it will shut down after an exploit in early September drained about $8.4 million from its Ethereum and Unichain deployments, leaving the project without the funds required to safely relaunch. The team said it paused smart contract activity after the September 2 attack and has kept its withdrawal portal open while it winds down operations.

Security firms and on-chain analysis traced the loss to a vulnerability in Bunni's custom Liquidity Distribution Function. Attackers used flash loans and manipulated internal calculations, exploiting rounding errors to withdraw more assets than intended, primarily in USDC and USDT. Initial investigations identified roughly $2.3 million taken on Ethereum and a further $5.9 million on Unichain. Firms including CertiK, QuillAudits and Halborn tracked the proceeds to consolidated wallets and are among the groups assisting with the forensic work.

Bunni's team cited the cost of a secure relaunch as the deciding factor in its closure. In a post to its official account the team wrote, "It is with saddened hearts that we announce the shutdown of Bunni." They said restoring...