Bunni, a decentralized exchange (DEX) built on Uniswap v4, has stopped operations after losing $8.4 million in a recent exploit. The team behind Bunni stated they do not have sufficient funds to safely restart the project.
Bunni Closes Over Lack of Funds
Bunni announced on September 2, 2025, that it had fallen victim to a hack resulting in the loss of approximately $8.4 million. The attackers exploited a vulnerability in the DEX’s smart contracts related to its Liquidity Distribution Function. This vulnerability allowed them to manipulate internal calculations and drain funds from liquidity pools on Ethereum.
While initial reports indicated that between $2.3 million and $2.4 million had been stolen on Ethereum, further analysis by QuillAudits and Halborn revealed an additional $5.9 million was lost on Unichain. The stolen assets, including USDC and USDT, were consolidated into a single wallet.
Following the incident, Bunni paused all smart contract activity and advised users to withdraw their funds. The project later revealed via X that restarting the platform would necessitate between six and seven figures for audit and monitoring costs. However, the team stated they could not afford these expenses, leading to the decision to cease operations. "It is with saddened hearts that we announce the shutdown of Bunni," wrote the team.
Bunni's users will continue to be able to withdraw their assets through the official website until further notice. The project also plans to distribute the remaining treasury funds to holders of BUNNI, LIT, and veBUNNI tokens, based on a snapshot that will exclude team members. Additionally, the Bunni v2 smart contracts have been relicensed from BUSL to MIT, making features such as surge fees and autonomous rebalancing freely available to its ecosystem.
Efforts to recover the stolen money are ongoing in collaboration with law enforcement. The team concluded their statement by thanking the community for its continued support throughout their journey.
Back-to-Back DeFi Shutdowns
Bunni marks the second DeFi initiative to close in less than 48 hours. The Kadena organization also recently announced the cessation of all its business and development activities due to unfavorable market conditions. According to the official statement, the Kadena blockchain will continue to run independently, maintained by decentralized miners and developers. Meanwhile, its native token, KDA, and protocol infrastructure will remain operational without disruption.
Members of the X crypto community were quick to respond to these developments. One user questioned the state of the industry, noting the increasing number of projects discontinuing operations. In the aftermath of the announcement, KDA's price dropped by more than 99% from its 2021 peak of $27.64. Analysts suggested that its chart showed signs of dumping days before the team publicly announced the closure.