Full Sail confirms vault fund losses after suspected Switchboard oracle compromise

  • Full Sail confirmed user fund losses from automated vaults on Sui.
  • Switchboard halted Move-based oracles on Aptos, Sui, IOTA and Movement.
  • Virtue CDP halted after a $10 million IOTA price-feed print.

Sui-based decentralized exchange Full Sail has confirmed a loss of user funds from its automated vaults after a suspected compromise of Switchboard oracle feeds on Sui, and has paused deposits and withdrawals until oracle integrity is restored and verified. Hours after Full Sail’s disclosure on August 29, 2026, Switchboard took Move-based data feeds offline across Aptos, Sui, IOTA and Movement after contributors detected a potential compromise, coordinating with ecosystem teams and security organizations. SolanaFloor confirmed the operational halt and noted that the blockchains themselves remain fully functional, with only Switchboard’s deployments on those networks affected. No comparable issue was identified on Solana, where Switchboard runs separate code, though users were advised to migrate temporarily to other oracle providers. The halt followed a reported IOTA incident in which a compromised oracle key allegedly pushed a price feed to $10 million, enabling roughly 4.94 million VUSD to be minted through Virtue CDP and liquidating 45 users; Switchboard has not publicly confirmed that event as the cause of the broader potential compromise, and its initial disclosure did not name a root cause, attacker or confirmed losses. Full Sail has not published a dollar loss figure, affected vault list or compensation plan; DeFiLlama recently listed its total value locked near $226,300. The episode sits against earlier Sui DeFi failures at Cetus and Typus and leaves protocols dependent on Switchboard Move feeds paused or rushing to alternatives such as Pyth, Chainlink or RedStone.

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