Sui protocol Volo hacked for $3.5M; $2M frozen, losses absorbed
Volo, a Sui-based liquid staking protocol, was exploited for about $3.5 million. The team froze roughly $2 million of the assets and says it will absorb the remaining losses.
Volo, a liquid staking protocol on the Sui blockchain, was exploited for about $3.5 million after an attacker drained funds from three isolated vaults.
The breach affected vaults holding Wrapped Bitcoin (WBTC), Matrixdock Gold XAUm and USDC. The protocol reported that other vaults, representing about $28 million in total value locked, were not affected.
In updates on X, the team said it initially blocked roughly $500,000 linked to the breach and later froze or blocked about $2 million in total. The protocol added that it prevented the attacker from bridging 19.6 WBTC, removing those coins from the hacker’s control.
“We detected the attack, immediately notified the Sui Foundation and ecosystem partners to contain the damage, and froze the vaults to prevent any further exposure,” Volo wrote on X. The team said it is working with partners to determine the best way to return the blocked funds to Volo.
Volo reported the exploit was limited to three vaults and that it has not identified a shared vulnerability affecting other vaults. The protocol plans to cover the loss itself rather than pass costs to users, but it has not released a detailed compensation or remediation plan.
The disclosure did not include technical details on how the attacker accessed the vaults. Volo did not say whether the incident involved smart contract flaws, private key compromise or another attack vector.
The incident follows a separate, larger exploit of Kelp that lost about $293 million over the weekend. Industry data indicate more than $17 billion has been stolen from crypto platforms over the past decade, with private key compromises and phishing frequently cited among causes.
Volo notified the Sui Foundation and is coordinating with ecosystem partners and tracing services to recover and return blocked assets. The protocol said it will provide further updates as investigations continue and did not indicate whether it will pursue legal action or involve law enforcement at this stage.
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