Full Sail Wounds Down After $91,000 Sui Exchange Hack

Full Sail, a decentralized exchange operating on the Sui (SUI) network, has announced its decision to wind down after suffering a security breach. The incident occurred on August 29, when an attacker exploited a vulnerability in Switchboard's production code, draining approximately $91,000 from three of Full Sail's vaults.

The attacker manipulated oracle price updates by adding their own key to the network, causing false prices to be accepted as valid. They then pushed prices down to nearly 100 times below market value and deposited funds into the affected vaults, allowing for a withdrawal worth more than the initial deposit.

Full Sail emphasized that this was not an administrative key compromise but rather an exploit of Switchboard's code. The protocol has paused deposits and withdrawals while it investigates the incident and works to compensate affected users.

In a separate development, Virtue reported losses of $455,000 tied to the same Switchboard incident. Switchboard contributors halted their network on multiple platforms, including Aptos, Sui, Iota, and Movement. Full Sail noted that Switchboard had not provided technical details or committed funds for compensation as requested.

In a bid to mitigate the losses, Full Sail stated that it would absorb the shortfall and compensate community depositors first. The team also announced plans to release a detailed incident report and reflect on the events leading up to their decision to wind down.