Full Sail is winding down on Sui (SUI) after a Switchboard-linked attack drained about $91,000 from three vaults, making security failure the reason for its closure.
Key Points:
- An attacker used a compromised oracle signing path to manipulate prices and drain roughly $91,000 from three Full Sail vaults.
- Full Sail says remaining protocol liquidity will go to users first, while the team will cover any shortfall.
- The shutdown adds to a broader 2026 list of crypto projects that closed, went dark or entered bankruptcy.
Full Sail Hack
Full Sail had begun winding down after confirming the Aug. 29 attack, which affected automated vaults but left direct liquidity pool positions untouched.
Full Sail said the attacker exploited Switchboard production code that controls who can sign oracle price updates, then added a key under the attacker’s control. “This was not a Full Sail admin key compromise,” the team said.
Once the network accepted the key, the false price updates appeared valid, allowing the attacker to push prices to roughly 100 times below market before depositing into the affected vaults. Restoring the prices then enabled a withdrawal worth more than the original deposit. Full Sail paused deposits and withdrawals after confirming the incident.
Virtue separately reported about $455,000 in losses tied to the same Switchboard incident, while Switchboard said contributors halted its network on Aptos (APT), Sui, Iota (IOTA) and Movement (MOVE). Full Sail said Switchboard had not supplied the requested technical details or committed compensation as of Sept. 1, while Mysten Labs reportedly declined a request for financial support. “All remaining protocol owned liquidity is going to users, and the team will absorb the shortfall so community depositors are compensated first,” Full Sail said.
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Crypto Protocol Closures
The shutdown stands out because an exploit of roughly $91,000 was enough to end the protocol, showing how a failure in external price infrastructure can become an operational threat for smaller DeFi projects. Full Sail has said it plans to publish a detailed incident report explaining both the attack and the decision to wind down.
Several other crypto projects have closed after security incidents in 2026.
Summer.fi wound down after a $6 million exploit hit its Lazy Summer Protocol, while Radiant Capital ended DAO operations in Jun., 18 months after losing more than $50 million. Step Finance and SolanaFloor also closed in February following a treasury hack.
The broader closure count extends beyond hacks alone. RootData lists 204 crypto projects that shut down, went dark or entered bankruptcy in 2026, placing Full Sail within a wider contraction that has included both security failures and other causes.
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