Switchboard, an oracle provider supplying price data to decentralized finance applications, halted deployments on Aptos, Sui, IOTA and Movement after reports of a compromise affecting its Move-language implementations. The provider advised users to migrate temporarily to alternative oracles but has not published a root cause analysis or restoration timeline. Switchboard said it received no similar reports about its Solana implementation.
At least three applications reported material impact from the suspected compromise. Full Sail, a Sui-based exchange, confirmed vault losses and paused deposits and withdrawals until oracle integrity could be restored and verified. The platform did not disclose affected assets, quantify losses, or explain whether its documented oracle-protection controls activated during the incident.
IOTA credit protocol Virtue provided the most detailed account of the attack. According to Virtue, an attacker gained control of signing keys for all 14 oracles on Switchboard's IOTA mainnet queue and manipulated the reported IOTA price to $10 million. The attacker then deposited 1 IOTA and minted approximately 4.94 million VUSD tokens. When the feed was pushed near zero, the manipulation triggered 47 liquidations affecting 45 users. Virtue froze borrowing, repayment, deposits, withdrawals, liquidations and flash loans, warning that VUSD became materially undercollateralized during remediation.
On Sui, Volo paused vault deposits and withdrawals as a precautionary measure due to its Switchboard dependency. Volo stated its vaults remained unaffected and user funds were safe. Sui's status page showed all systems operational, while IOTA's page indicated mainnet services operating with listed incidents resolved.
Switchboard has not published a complete list of affected integrations, leaving the full scope of the compromise unresolved.
