Gnosis Chain Executes Hard Fork to Recover $9.4 Million Post-Balancer Exploit
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 24 2025- Fund Recovery Action: Gnosis Chain executed a hard fork on December 22 to successfully recover $9.4 million frozen during the November Balancer exploit, ensuring that these funds are no longer under the hacker's control, which enhances user confidence in network security.
- Node Upgrade Requirement: All node operators were urged to upgrade their clients immediately to avoid penalties, a measure that not only ensures the smooth operation of the new chain but also emphasizes the importance of community governance, despite existing divisions over the legitimacy of this action.
- Governance Controversy: The hard fork has sparked intense discussions regarding blockchain immutability and governance intervention, with some community members expressing concerns that this move could undermine the fundamental principles of blockchain, potentially leading to more frequent state modifications in the future and affecting network trust.
- Background of Recovery Efforts: Following the exploit, Gnosis implemented an emergency soft fork to blacklist the hacker's address, but the assets remained frozen, making the hard fork the only technical solution, highlighting the complex relationship between network flexibility and governance challenges in crisis situations.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
