Hedera Foundation Issues Compensation for Bonzo Finance Impacted Users

Following the oracle exploit that affected Bonzo Lend last Saturday, July 11th, 2026 (UTC), the Bonzo Finance Labs team, with guidance from the Bonzo Finance Foundation, would like to share an encouraging update for the Bonzo Finance community and the broader Hedera DeFi ecosystem.

Bonzo Finance Foundation will fund the recovery of all affected Bonzo Lend user positions as they stood immediately prior to the incident, backed by a recovery facility committed by Hedera Foundation.

We are deeply grateful to Hedera Foundation for stepping forward, and view this commitment as reflecting the exceptional circumstances surrounding this incident and a shared dedication to users and builders in the Hedera ecosystem. It is a meaningful show of support, and one we do not take for granted.

What this means for users

Affected users will receive advances covering the full value of the losses to their affected positions, calculated on the basis of their respective values immediately before the start of the exploit at 00:51:39 (UTC) on Saturday, July 11th, 2026. Funding is being provided to the Bonzo Finance Foundation for the sole purpose of recouping the losses of individuals who participated in the protocol, and funds will not be deployed for any other purpose.

Advances will be delivered through a dedicated program, administered separately from the protocol's smart contracts, so that participation is simple, orderly, and secure. Advances will be paid to verified wallets following a straightforward verification process, and structured so that recovery claims against the parties responsible for the exploit are preserved and pursued on users' behalf. Full details on this program, including how to participate, will be shared in a follow-up announcement with the community.

Protocol status

Bonzo Lend markets remain paused. A redemption mechanism to facilitate this program is actively being developed. This involves the development and deployment of bespoke smart contracts on Hedera mainnet; as with any production code deployed by Bonzo Finance Labs, these contracts will be rigorously audited by our security partner, Halborn, and thoroughly tested before release. We will not rush this step. Getting it right, and getting it secure, is the priority.

What you need to do now

Nothing at this time, and no action is required from users today. Please follow only official Bonzo Finance channels for verified updates and be cautious of anyone claiming otherwise or asking you to take action to "claim" funds.

The Bonzo Finance Labs team will announce the program, its details, and the steps to participate in a follow-up blog posting at https://bonzo.finance/blog.

No application, website, or member of the Bonzo Finance Labs team will ever ask for your seed phrase or private keys. Please stay vigilant in verifying the source of any communications received regarding this issue. Always default to not clicking on potentially harmful links or engaging with anyone claiming to be a member of the Bonzo Finance Foundation or Bonzo Finance Labs team(s).

Thank you

To Hedera Foundation and the broader Hedera community — thank you. And to our users: thank you for your patience, trust, and level heads throughout this process.