Decentralized finance protocol Full Sail will wind down operations on the Sui blockchain after an exploit drained roughly $91,000 from three automated vaults during a security incident tied to oracle provider Switchboard. Full Sail had already paused deposits and withdrawals after detecting abnormal activity and confirming losses. Switchboard separately reported a potential compromise of its Move-based oracle infrastructure and halted its networks on Aptos, Sui, IOTA and Movement for investigation. Full Sail disabled new deposits and liquidity rewards, shifting pools to withdrawal-only after security checks. It plans to compensate users with protocol-owned liquidity, cover any remaining shortfall from the team, and publish withdrawal instructions soon.
This update represents a notable development in the Crypto sector. Organizations and founders tracking this space should evaluate potential strategic and technical implications on their operations.