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      Switchboard Suspends Operations on Multiple Blockchains Following Security Breach

      Switchboard, a multi-chain oracle protocol, has suspended operations on its Move-based deployments across Aptos, Sui, IOTA, and Movement after detecting a potential security compromise. The decision was made during the transition from August 28 to 29, marking a significant incident in the realm of decentralized finance (DeFi).

      The breach was linked to a compromised oracle key on IOTA, which allowed an attacker to inflate the token's price to $10 million. This manipulation enabled the minting of approximately 4.94 million VUSD through the Virtue CDP protocol, resulting in liquidations affecting 45 users and the freezing of exchange addresses. The Virtue CDP protocol was also halted in response to the incident.

      Switchboard's halt suggests that the vulnerability may be architectural, impacting all Move-based implementations rather than being confined to a single network. The protocol is collaborating with security agencies to investigate the breach, while its Solana deployment remains unaffected due to different underlying code. Despite the ongoing investigation, Switchboard has indicated that user funds have largely remained intact, although this assessment may change as more information becomes available.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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