Full Sail to Shut Down Following Security Breach
- Full Sail, a DeFi protocol on the Sui blockchain, is winding down operations after a security incident.
- An attacker exploited vulnerabilities in oracle provider Switchboard, leading to a loss of approximately $91,000 from Full Sail’s vaults.
- The protocol has paused new deposits and liquidity provider (LP) reward claims and will transition to withdrawal-only mode.
- Virtue, another protocol affected by the breach, reported losses of around $455,000 and impairment of its VUSD stablecoin backing.
- Full Sail plans to use its remaining liquidity to compensate users while covering any shortfall from team resources.
The shutdown decision follows an investigation into a suspected compromise of Switchboard’s infrastructure affecting multiple networks including Sui and IOTA. Full Sail aims to prioritize user compensation as it finalizes withdrawal processes in the coming days.
With losses totaling about $91,000 for Full Sail and $455,000 for Virtue, this incident highlights significant vulnerabilities within oracle systems in the DeFi space. (Source)
