Switchboard Halts Four Chains Over Potential Oracle Compromise

Switchboard, an oracle network, has halted operations on four chains - Aptos, Sui, IOTA, and Movement - due to a potential compromise affecting its Move-based deployments. The shutdown affects applications that rely on Switchboard's data feeds for prices, collateral valuations, liquidations, and other automated decentralized finance functions.

The investigation follows an incident involving IOTA's oracle key, which allegedly pushed an asset price feed to $10 million. This manipulated valuation was then used against Virtue, an IOTA-based collateralized debt position protocol, resulting in the minting of approximately 4.94 million VUSD using collateral whose apparent value had been inflated.

The event also reportedly triggered liquidations affecting 45 users. Switchboard has not publicly confirmed that the reported IOTA event explains the entire potential compromise. Its initial disclosure did not identify a root cause, attacker, or confirmed losses.