Sui-based DeFi protocol Full Sail is winding down operations due to a security incident involving the Switchboard oracle, which caused a $455,000 loss for affiliated protocol Virtue Money and the liquidation of 45 users. Switchboard has not provided requested technical details or compensation, and Mysten Labs declined financial support. Full Sail will prioritize remaining liquidity to users, with the team covering the shortfall.
Sui-based DeFi protocol Full Sail announced it is gradually shutting down after being affected by a security incident involving the Switchboard oracle. The incident led to a loss of approximately $455,000 for the affiliated protocol Virtue Money, with 45 users liquidated.
According to Full Sail, Switchboard has issued a statement on the incident but as of September 1 has not provided the technical details requested by Full Sail, nor has it committed to compensation. Mysten Labs, the developer behind Sui, declined Full Sail's request for financial support.
Full Sail stated that all remaining protocol-owned liquidity will be prioritized for user withdrawals, with the team covering any shortfall to ensure community depositors are compensated first. The timeline for the full shutdown has not been disclosed.
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