Full Sail Shuts Down After Switchboard Incident

The decentralized exchange Full Sail is shutting down due to security issues with the Switchboard oracles. The platform, launched on the Sui blockchain, decided to cease operations following an attack that affected its automated vaults. The incident occurred last week due to a compromise of the Switchboard infrastructure, which the exchange's mechanics relied upon. Switchboard is conducting an investigation into a possible breach of its Move-based solutions and has suspended operations in several ecosystems: Aptos, Sui, IOTA, and Movement. The Full Sail team has closed the option for new deposits and halted rewards for liquidity providers. Once security checks are completed, standard pools will be switched to a mode allowing only withdrawals. Full Sail emphasized that compensating affected clients will be a priority. The exchange plans to allocate the remaining liquidity to cover losses, and in case of insufficient funds, the developers promised to cover the difference out of their own pockets. Previously, the company BounceBit also shut down its blockchain after a $3,000,000 hacker attack, highlighting the risks for DeFi projects.

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