Written by Helen Partzstaff writerReviewed by Yohan Yunstaff editor

Written by Helen Partzstaff writer

Reviewed by Yohan Yunstaff editor

Sui DeFi protocol Full Sail to wind down after Switchboard incident

Latest NewsPublishedSep 2, 2026

Full Sail is shutting down after an attacker removed about $91,000 from three vaults during a security incident linked to oracle provider Switchboard.

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, plans to shut down after a security incident involving oracle provider Switchboard resulted in user losses.

Full Sail took to X on Tuesday to announce that the protocol is winding down, immediately disabling new deposits and liquidity provider (LP) reward claims. Regular pools will move to withdrawal-only mode after final security checks, with compensating users the protocol’s top priority, Full Sail stated.

The decision follows a security incident last week that affected Full Sail’s automated vaults following a suspected compromise of Switchboard’s oracle infrastructure.

Full Sail first disclosed the incident on Saturday, saying it had verified a loss of funds and paused deposits and withdrawals while it investigated. Switchboard stated in an X post on Saturday that it was investigating a potential compromise of its Move-based implementations and had halted its network on Aptos, Sui, IOTA and Movement.

Full Sail later stated an attacker removed about $91,000 from three of its vaults. Virtue, a stablecoin lending protocol based on IOTA (IOTA), separately reported about $455,000 in losses and stated the backing of its VUSD stablecoin had been impaired.

Full Sail stated it will utilize its remaining protocol-owned liquidity to compensate users, while the team will cover any shortfall so community depositors are repaid first. The protocol anticipates to publish withdrawal and claim instructions within the coming days.

Related: More Markets lending reserve drained for $9.3M: Blockaid

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• SUI
• Hacks
• DeFi
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