Sui DeFi protocol Full Sail to wind down after Switchboard exploit

The shutdown comes after an attack last week, suspected to be linked to a compromise of oracle provider Switchboard's infrastructure. Full Sail initially disclosed the incident on Saturday, confirming fund losses and pausing all transactions while an investigation commenced. Switchboard acknowledged the potential compromise of its Move-based implementations and halted its network across multiple blockchains, including Aptos, Sui, IOTA, and Movement.

During the exploit, an attacker reportedly removed approximately $91,000 from three of Full Sail's vaults. Separately, Virtue, a stablecoin lending protocol on IOTA, reported losses totaling around $455,000, with its VUSD stablecoin's backing impaired. Full Sail has stated its top priority is compensating users, intending to use its remaining protocol-owned liquidity and cover any shortfall to ensure community depositors are repaid first. The protocol expects to provide detailed withdrawal and claim instructions in the coming days.