AI Debug Logs Reveal ChatGPT’s Link to $116 Million Balancer DeFi Hack
AI Debug Logs Reveal Balancer Hacker May Have Used ChatGPT Code
In a stunning twist to one of this year’s biggest decentralized finance (DeFi) breaches, new blockchain evidence suggests that the hacker behind the $116 million Balancer exploit may have used artificial intelligence tools—possibly including ChatGPT—to generate parts of the malicious code.
The finding has sent shockwaves through both the cybersecurity and crypto communities, marking a chilling moment where AI might have played a direct role in one of the most damaging blockchain attacks to date.
Suspicious Debug Logs Hint at AI-Generated Code
Blockchain analyst @AdiFlips uncovered unusual traces within the hacker’s code during a post-mortem investigation. While reviewing the on-chain data, he found “console.log” debugging messages—phrases like “Done with amts1”—embedded within the exploit script.
Such notes are common in experimental or AI-generated code, but rarely appear in professional-level attacks, where hackers typically strip all identifiers to avoid leaving digital fingerprints.
“These debug messages are telltale signs of a model-generated output,” said AdiFlips in a statement on X (formerly Twitter). “No skilled attacker would manually include console logs in a live exploit. It’s sloppy—and that sloppiness feels automated.”
This observation has led many to believe the hacker might have used a large language model (LLM) such as OpenAI’s ChatGPT or similar AI-based code assistants to construct or refine the exploit. If true, it would mark a turning point in the evolution of cyberattacks—one where artificial intelligence is not merely defending systems but actively weaponized to attack them.
$116 Million Drained from Balancer’s V2 Vault
The breach began in the early hours of November 3, 2025, when on-chain monitoring firms like Lookonchain and Nansen detected abnormal withdrawals from Balancer’s V2 Vault, a core component that manages liquidity across multiple pools.
Within hours, approximately $70.9 million worth of assets—including WETH, osETH, and wstETH—had been siphoned from Balancer smart contracts. As investigators continued tracing the stolen funds, the total loss ballooned to over $116 million.
By the end of the day, on-chain analysts confirmed that the attacker had begun swapping the stolen tokens for ETH, likely in an effort to launder the assets through mixers and intermediary wallets.
Despite growing pressure from users and the broader DeFi community, Balancer has yet to issue a detailed statement outlining its recovery strategy or compensation plan.
How the Exploit Worked
According to security researchers, the attacker exploited a vulnerability within Balancer’s V2 Vault, specifically in a function known as manageUserBalance.
The flaw allowed unauthorized balance updates and withdrawals under certain conditions, bypassing validation checks that were intended to restrict access. Once triggered, the exploit caused an immediate chain reaction—draining liquidity from multiple pools across different chains.
Unlike many previous breaches that involved leaked private keys or compromised admin privileges, this attack was purely code-based. The hacker manipulated the vault’s logic rather than stealing credentials, which made detection nearly impossible until it was too late.
“This wasn’t about weak passwords,” said Dr. Elena Varga, a blockchain security researcher at the University of Zurich. “It was a smart contract design flaw—the kind that can persist even after audits. What’s concerning is that the exploit appears optimized by AI, which means future vulnerabilities could be identified and weaponized much faster.”
The Community Reacts with Fear and Frustration
The reaction from the DeFi community was immediate and fierce. Within hours of the breach, users began withdrawing liquidity en masse, pushing Balancer’s total value locked (TVL) down by nearly 35% overnight.
On social platforms like Reddit and X, many accused Balancer’s team of being too slow to respond, while others expressed alarm over the idea that AI might now be capable of writing exploit-grade code.
“This changes everything,” wrote one user. “If hackers can feed smart contract audit logs into ChatGPT and get working exploit code in return, then DeFi security just entered a new arms race.”
Meanwhile, other DeFi platforms rushed to reassure their users. Rival projects like Curve Finance and Uniswap issued statements emphasizing that they were reviewing their codebases for similar vulnerabilities.
The broader industry sentiment? AI is no longer just a tool—it’s a potential threat vector.
The Rise of AI-Enhanced Cyberattacks
The Balancer hack underscores a worrying trend: as AI tools become more accessible and powerful, they can also accelerate cybercrime.
Experts warn that malicious actors could use AI not only to write code but also to:
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Analyze smart contracts for potential weaknesses at machine speed.
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Generate and test multiple exploit variations until one succeeds.
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Obfuscate malicious code, making it harder for auditors to detect patterns.
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Automate fund laundering by routing stolen assets through complex transaction networks.
“AI lowers the barrier to entry for sophisticated attacks,” explained Alex Chen, CTO of cybersecurity firm BlockDefend. “A person with limited coding experience can now produce effective exploits using AI-assisted prompts. That’s incredibly dangerous for an open ecosystem like DeFi.”
Some experts are now calling for the development of AI-based defense systems that can monitor smart contracts and detect anomalies in real time. Others suggest ethical restrictions or watermarking mechanisms to identify AI-generated code segments, making it easier to trace such attacks.
Balancer’s Silence Raises Concerns
While Balancer has acknowledged “technical difficulties” on its official channels, it has yet to release a comprehensive postmortem.
The lack of transparency has drawn criticism from major investors and analysts who argue that openness is essential to restoring confidence.
“Silence only breeds fear,” said Jonathan Reeve, a DeFi policy advisor in London. “Balancer has a duty to explain what went wrong, how the vulnerability was exploited, and what steps are being taken to prevent a repeat.”
Until such information is disclosed, users remain uncertain about whether their remaining funds are secure or if another attack could follow.
Lessons for the DeFi Industry
The Balancer breach serves as a harsh reminder of how fragile decentralized systems can be. Even audited smart contracts can hide vulnerabilities that slip through the cracks—and with AI accelerating both detection and exploitation, the risks are growing.
Security experts are now urging DeFi projects to adopt multi-layered security practices, including:
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Conducting continuous code audits using both human and AI-assisted tools.
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Implementing emergency kill switches for rapid response to suspicious activity.
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Requiring independent third-party testing before mainnet deployment.
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Training teams on AI-driven exploit simulations to anticipate potential attacks.
For investors and regular users, the message is equally clear: trust but verify. Even well-known protocols with solid reputations are not immune to sophisticated, AI-assisted exploits.
A Turning Point for AI and Crypto
The possibility that artificial intelligence helped create one of the most costly DeFi hacks to date will likely reshape the conversation around AI regulation and blockchain security.
For years, AI has been hailed as a revolutionary tool for protecting systems, optimizing trading algorithms, and automating risk analysis. Now, it stands accused of helping a hacker break one of crypto’s largest protocols.
“It’s poetic irony,” said Dr. Varga. “The very technology we designed to detect human mistakes is now being used to exploit them. It’s a sobering moment for the entire industry.”
As investigators continue tracking the stolen funds across multiple wallets and bridges, one thing is clear: the line between human and machine-driven hacking has officially blurred.
And in the world of decentralized finance, that may change everything.
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