Volo Protocol, a liquid staking platform on the Sui network, suffered a security breach resulting in an estimated $3.5 million loss from three vaults. The team immediately froze the affected vaults and blocked an attempt to bridge 19.6 WBTC away from the attacker. Recovery efforts have secured roughly $500,000 in linked assets, with the protocol stating it will absorb the financial impact rather than pass losses to users.
The liquid staking platform Volo Protocol reported a security breach leading to the loss of approximately $3.5 million from its vaults. The exploit impacted three vaults holding WBTC, XAUm, and USDC assets on the Sui network.
The protocol said it detected the attack and responded immediately by notifying partners and freezing the affected vaults. It confirmed the vulnerability was isolated and that remaining vaults holding around $28 million are secure.
In a subsequent update, Volo said it had successfully blocked an attacker’s attempt to bridge 19.6 WBTC away, removing the assets from the hacker’s control. The protocol is coordinating with ecosystem participants to return the intercepted assets.
Recovery efforts have already frozen roughly $500,000 worth of assets linked to the exploit. “We are in damage control mode now, but once that’s done, we will work out a remediation plan, and a full breakdown will be shared shortly,” the team stated.
This incident follows a series of major DeFi exploits in April. These included attacks on the Solana-based Drift Protocol, NEAR protocol’s Rhea Finance, and KelpDAO, which suffered the largest hack of the year.
