Sui DeFi Project Full Sail Shuts Down After Oracle Incident
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Article Content
Written by: Helen Partz, staff writer
Reviewed by: Yohan Yun, staff editor
Sui DeFi protocol Full Sail to wind down after Switchboard incident
Latest News
Published: Sep 2, 2026
Full Sail is shutting down after an attacker removed approximately $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 following a security incident involving oracle provider Switchboard, resulting in user losses.
In a Tuesday announcement, Full Sail stated that the protocol will cease allowing new deposits and immediately disable liquidity provider (LP) reward claims. Regular pools will transition to a withdrawal-only mode after final security checks, with user compensation being the protocol’s top priority.
The decision follows a security incident last week that affected Full Sail’s automated vaults after a suspected compromise of Switchboard’s oracle infrastructure.
Full Sail initially disclosed the incident on Saturday, confirming a loss of funds and pausing deposits and withdrawals while investigating. Switchboard also 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Full Sail later revealed that an attacker had withdrawn around $91,000 from three of its vaults. Virtue, a stablecoin lending protocol based on IOTA, separately reported approximately $455,000 in losses, attributing it to potential impairment of its VUSD stablecoin’s backing.
Full Sail plans to use its remaining protocol-owned liquidity to compensate users, with the team covering any shortfall to ensure community depositors are repaid first. The protocol expects to publish withdrawal and claim instructions in the coming days.
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