Balancer Labs, the founding company of Balancer, a leading automated market maker in the DeFi space, announced the cessation of operations after suffering a devastating $116 million attack in November 2025. Co-founder (Fernando Martinelli) stated that legal risks, unsustainable revenue, and the burden of maintaining the company structure related to the hacker attack were the reasons for the company's closure. The attack exploited a vulnerability in Balancer Protocol V2's vault architecture, highlighting design-level risks in complex, composable DeFi systems. Martinelli clarified that the Balancer Protocol itself will not be terminated, and its future will be determined by community governance.