Volo Protocol Loses $3.5M in Exploit Targeting Three Sui Vaults

The attack involved assets held across three vaults, including Wrapped Bitcoin, Matrixdock Gold XAUm and USDC.

Crypto News

Sui-based liquid staking protocol Volo has confirmed a $3.5 million security breach affecting three isolated vaults, with the team moving to freeze assets and absorb losses rather than pass the impact on to users.

The attack involved assets held across three vaults, including Wrapped Bitcoin, Matrixdock Gold XAUm and USDC. Volo said it detected the breach, immediately notified the Sui Foundation and ecosystem partners to contain the damage, and froze the affected vaults to prevent further exposure. The protocol confirmed that approximately $28 million in total value locked across its remaining vaults was unaffected, with no shared vulnerability identified between the exploited vaults and the rest of the platform.

Volo is a liquid staking platform on the Sui

that allows users to stake $SUI tokens and receive voloSUI in return. The protocol has not yet finalized a remediation plan but has committed to absorbing the losses internally.

Recovery efforts have already rescued a portion of the stolen funds. In two separate updates following the exploit, Volo said it had frozen or blocked roughly $2 million of the total amount taken. Approximately $500,000 linked to the breach was frozen in the first recovery action. In a subsequent update, the team said it had successfully blocked an attempt by the attacker to bridge 19.6 WBTC, effectively removing those funds from the attacker's control. "We are now working with ecosystem partners to determine the best path to return these funds to Volo," the protocol wrote.