Switchboard Oracle Compromise Hits DeFi Apps Amid Halted Deployments

Switchboard, an oracle provider for DeFi applications, has halted four deployments on Aptos, Sui, IOTA, and Movement due to a potential compromise in its Move-language implementations. The issue led to at least three applications reporting losses, freezes, or precautionary access restrictions.

Full Sail, a Sui-based exchange, confirmed that its vaults lost funds and paused deposits and withdrawals until oracle integrity is restored. Although the affected vaults and assets were not disclosed, Full Sail's documentation highlights automated systems using real-time market data to rebalance positions.

Switchboard has not identified the root cause of the issue or provided a timeline for restoring the four Move deployments. The provider advised users to migrate temporarily to alternative oracle services.