TL;DR: Full Sail, a Sui‑based DeFi protocol, is winding down after a Switchboard oracle compromise that let an attacker steal roughly $91 k from three vaults; the team will use remaining liquidity and cover any shortfall to repay users.
The Details
- Full Sail announced an immediate shutdown of new deposits and LP reward claims, moving existing pools to withdrawal‑only after final security checks. The protocol confirmed an attacker removed about $91,000 from three automated vaults following a suspected compromise of Switchboard’s Move‑based oracle infrastructure.
- Switchboard halted its network on Aptos, Sui, IOTA and Movement pending investigation. A related incident at Virtue, an IOTA‑based stablecoin lending protocol, reported $455,000 losses and impairment of its VUSD stablecoin backing.
- Full Sail plans to use its remaining protocol‑owned liquidity to compensate affected users, with the team covering any shortfall, prioritizing community depositors. Withdrawal and claim instructions are expected in the coming days.
- The event raises broader concerns about oracle reliability on Move‑based chains and could dampen short‑term sentiment for SUI and related assets.
Watch For
- Publication of detailed withdrawal and compensation instructions and any disclosed shortfall that the Full Sail team must cover.
- Updates from Switchboard on remediation of its oracle services across Aptos, Sui, IOTA and Movement, and any security audits.
- Market reaction of SUI and related Move‑based tokens, as well as potential migration of liquidity to alternative DeFi platforms.
Analyzed by FNXT Experts