Volo Protocol Suffers $3.5 Million Attack, Vows to Cover User Losses

Odaily News Volo Protocol posted an update on the security incident on platform X, stating that its Vaults were attacked, with approximately $3.5 million in assets (including WBTC, XAUm, and USDC) transferred out. The team detected the anomaly immediately and notified the Sui Foundation and ecosystem partners, while also freezing the related vaults to prevent further losses.

All Vaults are currently suspended, pending a complete post-mortem analysis and remediation. The project team stated that the vulnerability only affected 3 specific Vaults, leaving the remaining vaults with approximately $28 million TVL unaffected. There is no shared attack vector, and the funds are secure.

Furthermore, Volo emphasized that it will bear the losses from this incident and will not pass the risk onto users as much as possible. It is collaborating with on-chain security firms to pursue fund recovery and investigation. A complete review and remedial plan will be announced subsequently.