Suspected Switchboard oracle compromise triggers DeFi liquidations and freezes

Reports of a potential Switchboard Move oracle compromise affected deployments on Aptos, Sui, IOTA and Movement. Switchboard said contributors halted those deployments and advised users to migrate temporarily to alternatives. Switchboard said it had not received similar reports about its Solana implementation. Switchboard has not published a root cause or a timetable for restoring the four Move deployments. Sui-based exchange Full Sail confirmed that its vaults lost funds. Full Sail paused deposits and withdrawals until oracle integrity was restored and verified. Full Sail did not identify the affected vaults or assets. Full Sail did not provide transaction records or quantify the loss. DefiLlama placed Full Sail's total value locked at roughly $229,000 on Aug. 31. IOTA credit protocol Virtue said an attacker gained control of the signing keys used by all 14 oracles on Switchboard's IOTA mainnet queue. The attacker pushed IOTA's reported price to $10 million. The attacker then deposited 1 IOTA and minted about 4.94 million VUSD, according to Virtue. Virtue said the feed was later pushed near zero. Virtue said the change triggered 47 liquidations affecting 45 users. Virtue froze borrowing, repayment, deposits, withdrawals, liquidations and flash loans. Virtue warned that VUSD was materially undercollateralized while remediation was pending. On Sui, Volo paused vault deposits and withdrawals as a precaution because of a Switchboard dependency. Volo said its vaults were unaffected and user funds were safe. Sui's status page showed all systems operational on Aug. 31. IOTA's status page showed mainnet services operating with listed incidents resolved. Equivalent status evidence was not established for Aptos or Movement. Switchboard has not published a complete list of affected integrations, so the full application footprint remains unresolved.