Gnosis Chain, a blockchain network focused on decentralized infrastructure, has taken direct action to recover funds lost in the Balancer exploit.
On December 23, Gnosis confirmed that its validator community approved a hard fork to move the stolen funds out of the hacker’s control. According to the team, the funds are now safe and no longer accessible to the attacker.
What Happened Before the Hard Fork
In early November, a Balancer-related exploit affected contracts running on Gnosis Chain. In response, most validators quickly adopted a soft fork to limit further damage. Since then, developers, validators, and other contributors have worked together to design a stronger solution. That solution came in the form of a hard fork, which changes the chain’s rules at the protocol level.
Yesterday, our community of operators decided to execute a hard fork to recover the funds lost in Balancer hack. The funds are now out of the hacker’s control.
All remaining node operators should take action to avoid penalties.
— Gnosis Chain (@gnosischain) December 23, 2025
Why the Hard Fork Matters
A hard fork only works if most validators upgrade their software. Gnosis released new client versions and gave node operators 10 days to update. Validators who fail to upgrade risk penalties and falling out of sync with the network. The fork activated on December 22 at 16:11:40 UTC, once enough validators agreed to the change.
The main goal is simple. Recover the stolen funds and place them under community control. Gnosis aims to move the funds into a DAO-controlled wallet before Christmas. The community will later decide how users can claim their funds and how contributors may receive recognition or compensation.
⚠️ Important
Reminder for node operators who elect to execute a hard fork that could enable a return of funds to those affected by the Balancer exploit.
The deadline is set as 16:11:40 UTC on 22nd December 2025. Nodes that do not follow the chain with a majority of stake will…
— Gnosis Chain (@gnosischain) December 19, 2025
What Comes Next for Gnosis?
This recovery effort delayed the planned Fusaka hard fork. Gnosis now plans to test Fusaka on Chiado before Christmas and deploy it on mainnet in the new year. The team also plans to publish a full technical post-mortem explaining what went wrong and how the recovery worked.
The Bigger Debate
The incident has reopened a key question in crypto. When should validators step in? Gnosis says it wants a future where validators cannot censor transactions. For now, it encourages open discussion on how the community should use this power responsibly.
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