Balancer Labs, which operates the DeFi protocol Balancer, will dissolve its corporate entity following a hack, The Block reported on March 24 local time.

Fernando Martinelli (페르난도 마르티넬리), a co-founder of Balancer Labs, said on a forum that a $128 million theft on Nov. 3 last year increased legal burdens. He said keeping the corporate entity while bearing responsibility for past security incidents was not responsible management.

He added that Balancer Labs became a liability, not an asset, to the protocol's future as it operated without revenue.

The decision was directly triggered by the hack on Nov. 3, 2025. An attack that exploited a rounding flaw in Balancer v2 pool swap logic led to about $128 million being stolen across multiple chains.

Key members of the Balancer Labs team will move to a new entity, Balancer OpCo, following a governance vote.

Martinelli said the move does not mean the protocol is shutting down entirely. He said the protocol is still generating meaningful revenue and that Balancer records more than $1 million a year in fees. He said, "What failed was not the technology. What failed was the economic model around it and the loss of trust built up by security incidents."