Full Sail Winding Down Amid Oracle Security Incident on Sui Blockchain

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, is shutting down due to an oracle security incident. The incident led to significant losses for Virtue Money, with approximately $455,000 lost and 45 users liquidated.

The Full Sail team stated that they took the decision to wind down operations not lightly but was necessary to protect remaining users and ensure an orderly exit. They plan to distribute their remaining liquidity to users first and cover any shortfall using their own funds.

Mysten Labs, the development firm behind Sui, rejected Full Sail's request for financial assistance, highlighting a broader industry trend of infrastructure providers distancing themselves from protocol-level risks.