Volo Protocol – a Liquid Staking platform on Sui – stated that the project was exploited due to a vulnerability, resulting in approximately $3.5 million worth of assets being withdrawn from the protocol.
On X, Volo stated that the attack affected the WBTC, XAUm, and USDC vaults. The project said it immediately notified the Sui Foundation and its ecosystem partners and froze the vaults to limit damage.
Volo stated that the vaults will remain frozen until a full investigation report and remediation plan are available. The project also affirmed that the remaining vaults are not affected by this vulnerability and remain secure.
According to Volo, approximately $28 million worth of TVL held in other vaults remains unaffected. The team emphasized that they are prepared to absorb the loss themselves and strive to ensure users are not negatively impacted.
Less than 30 minutes after the initial announcement, Volo said they had managed to freeze an additional $500,000 in assets related to the mining operation.
The project stated that it is currently focused on taking action to restore trust, but has not disclosed the specific vulnerability or the identity of the attacker.
The Volo incident occurred shortly after the $292 million exploit targeting the Kelp DAO (a cross-chain bridge using LayerZero), which some investigators linked to North Korea's Lazarus group.
The article "Volo Protocol on Sui Hacked for $3.5 Million" first appeared on CoinMoi .
