Full Sail Shutdown Amid Switchboard Oracle Incident
Full Sail, a decentralized finance protocol built on Sui blockchain, has announced its permanent shutdown due to a security incident linked to oracle provider Switchboard. The incident resulted in losses for Full Sail's users, with an attacker draining approximately $91,000 from three automated vaults.
Virtue, another stablecoin lending protocol based on IOTA, reported losses of around $455,000, with the backing of its stablecoin VUSD compromised as a result of the attack. Full Sail committed to compensating users with the protocol's remaining liquidity and covering any deficit with its own funds.
The team suspended deposits and withdrawals while investigating what had occurred. Switchboard announced that it was investigating a possible breach of its Move-based implementations and halted its network on the Aptos, Sui, IOTA, and Movement blockchains.
Full Sail's shutdown marks an abrupt end for a protocol whose exposure to an external infrastructure vulnerability proved impossible to absorb. The team outlined its compensation plan, prioritizing reimbursement of community depositors with specific instructions for making withdrawals and claims to be published in the coming days.