Full Sail DeFi Platform on Sui Network Announces Closure Following Switchboard Security Breach
The Full Sail protocol has announced its closure following a security breach that saw hackers drain approximately $91,000 from three separate vaults in an incident connected to oracle service provider Switchboard.
A decentralized finance (DeFi) platform operating on the Sui blockchain network, Full Sail, has made the decision to cease operations following a security breach involving the oracle service provider Switchboard that led to financial losses for its users.
On Tuesday, Full Sail made an announcement via X stating that the protocol would be ceasing operations, with immediate effect disabling the ability for users to make new deposits and claim liquidity provider (LP) rewards. Following the completion of final security audits, standard pools will transition to a withdrawal-only operational mode, with the protocol stating that compensating affected users remains its highest priority, according to Full Sail's statement.
The shutdown announcement comes in the wake of a security breach that occurred the previous week, which impacted Full Sail's automated vault systems after what appears to be a compromise of the oracle infrastructure maintained by Switchboard.
The initial disclosure of the incident came from Full Sail on Saturday, when the protocol confirmed that it had verified a loss of user funds and had temporarily suspended both deposit and withdrawal functions while conducting its investigation. In a separate X post published on Saturday, Switchboard acknowledged that it was looking into a possible security compromise affecting its Move-based implementation systems and had temporarily suspended operations across its networks on Aptos, Sui, IOTA and Movement blockchains.
In a subsequent update, Full Sail revealed that an attacker had successfully extracted approximately $91,000 from three of the protocol's vault systems. Meanwhile, Virtue, which operates as a stablecoin lending platform built on IOTA (IOTA), disclosed separate losses totaling around $455,000 and confirmed that the collateral backing its VUSD stablecoin had been compromised.
According to Full Sail's statement, the protocol intends to utilize its remaining protocol-owned liquidity reserves to provide compensation to affected users, with the development team committing to personally fund any remaining deficit to ensure that community depositors receive full reimbursement as the primary beneficiaries. The protocol has indicated that detailed instructions for processing withdrawals and claims will be made available to users in the next several days.