Full Sail to close after Switchboard oracle breach

Full Sail is winding down operations after a security incident linked to oracle provider Switchboard removed about $91,000 from three automated vaults on the Sui blockchain. The protocol blocked new deposits and paused LP reward claims while it finalizes withdrawal procedures.

The project first reported the incident on Saturday and paused deposits and withdrawals during an investigation. On Tuesday it announced the decision to wind down and noted that regular pools will move to withdrawal-only mode after final security checks.

Switchboard posted that it is investigating a potential compromise of its Move-based oracle implementations and temporarily halted network activity on Aptos, Sui, IOTA and Movement. The interruption affected price and data feeds that Full Sail’s automated vaults use, allowing an attacker to withdraw funds.

A separate protocol, Virtue, reported about $455,000 in losses tied to the same suspected issue and said the backing for its VUSD stablecoin was impaired.

Full Sail announced it will use remaining protocol-owned liquidity to reimburse users and that the project team will cover any shortfall so community depositors are repaid first. The protocol plans to publish detailed instructions for withdrawals and claims in the coming days.

Oracles supply external data such as token prices to smart contracts. When those feeds are disrupted or manipulated, contracts can execute with incorrect data, which can let attackers trigger withdrawals or other unintended actions.

Full Sail posted on X: “Compensating users is the protocol’s top priority.” For now, deposits and LP reward claims remain disabled while the protocol completes security checks and publishes withdrawal steps.