Full Sail Sinks After Oracle Compromise Drains $91K

DeFi protocol Full Sail has shut down permanently after an attacker exploited faulty price feeds from oracle provider Switchboard to drain around $91,000 from three of its vaults on August 29. The incident triggered a cascading response that saw Switchboard halt operations across four separate blockchains.

The root cause of the issue lies in Switchboard's Move-language oracle implementations, which are used by both Sui and Aptos. Full Sail had implemented multi-oracle validation as a safeguard to cross-check price data from multiple sources before acting on it. However, this defense was not enough to prevent the attack.

Switchboard responded by ceasing operations across four chains: Sui, Aptos, IOTA, and Movement. Full Sail laid out its shutdown roadmap by September 2, disabling new deposits and halting liquidity provider reward claims while shifting all remaining pools to withdrawal-only mode.

The team committed to distributing remaining liquidity back to users and pledged to cover any shortfalls out of pocket. A comprehensive incident report is expected in the coming days.