Full Sail Winding Down After Security Incident with Switchboard

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, has announced that it will wind down operations following a security incident involving oracle provider Switchboard. The incident led to user losses and affected Full Sail's automated vaults.

The issue began last week when Switchboard suspected a compromise of its Move-based implementations and halted its network on various blockchains, including Sui. As a result, Full Sail paused deposits and withdrawals while it investigated the loss of funds.

An attacker removed approximately $91,000 from three of Full Sail's vaults, with Virtue, another stablecoin lending protocol, reporting losses of around $455,000. The incident has left users worried about their funds, but Full Sail assures that compensating users is its top priority.