Sui-based Platform Suffers '$3.5 Million' Theft...When Will the Fear of Serial Hacking End?

▲ Hacking. Cryptocurrency trading/ChatGPT generated image

A $3.5 million asset theft incident occurred at Volo Protocol, a Sui (SUI) network-based liquidity staking platform. The team immediately froze the vaults, focusing on preventing further spread of damage.

According to an April 22 report by the cryptocurrency specialized media outlet Cryptopotato, a hack occurred at Volo Protocol, a Sui network-based liquidity staking platform. Approximately $3.5 million worth of assets were leaked.

The attacker targeted three vaults containing WBTC, XAUm, and USDC assets. Immediately after realizing the incident, the team communicated the situation to the Sui Foundation and its partners. Subsequently, all vaults were immediately frozen.

Volo Protocol stated that the scope of the damage was limited. It announced that the breach was confined to three vaults. The remaining approximately $28 million in deposited assets were explained to be safe.

The team collaborated with on-chain investigators to trace the funds. They have already successfully frozen approximately $500,000 worth of assets. An attempt by the hacker to bridge 19.6 WBTC externally was also blocked.

Volo Protocol stated its position not to pass on the losses to users. The protocol has established a policy to absorb the full amount. Compensation plans and recovery procedures are currently being prepared.

A Volo Protocol official said, "We are currently focused on damage control mode." He added, "We will announce the compensation plan as soon as the cleanup is complete."

This incident aligns with the series of major security incidents that have continued since April. $285 million was leaked from Solana (SOL)-based Drift Protocol. NEAR Protocol's Rea Finance also suffered a $7.6 million oracle manipulation attack. KelpDAO, which utilizes LayerZero infrastructure, recorded a loss of $292 million, marking it as the largest hacking incident of the year.

Security risks are expanding across the entire virtual asset ecosystem. The speed of the protocol's response and its ability to recover funds have emerged as key variables. Volo Protocol prevented further damage through freezing measures and asset tracing. Investors are closely watching the compensation procedures and security enhancement plans.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*