The most recent event in a string of attacks against DeFi platforms is the disclosure by the decentralized finance (DeFi) protocol Volo of a security compromise that led to the theft of digital assets valued at around $3.5 million.
The team said Wednesday on X that some vaults were hit and that assets including Wrapped Bitcoin (WBTC), Matrixdock Gold XAUm, and USDC were impacted.
The team wrote:
“We detected the attack, immediately notified the Sui Foundation and ecosystem partners to contain the damage, and froze the vaults to prevent any further exposure.”
Freezing of Stolen Funds
According to the protocol, there is no common vulnerability and the entire value of around $28 million that is locked across other vaults is secure. The attack has been restricted to three isolated vaults. Details of any remediation strategy have not been determined, although it did indicate intentions to absorb the losses instead of passing them on to consumers.
Users of the Sui blockchain stake their tokens on the Volo platform and get voloSUI (VSUI) as a reward. The attack hit DeFi at the same time that another liquid restaking protocol, Kelp, was compromised for around $293 million over the weekend, sending shockwaves across the ecosystem.
Volo has said in two different announcements that it has barred or frozen around $2 million of the stolen funds so far. According to the initial protocol update, around $500,000 associated with the hack has already been frozen. Subsequently, the group said that it had prevented the hacker from attempting to bridge 19.6 WBTC, thus seizing possession of those assets.