Switchboard, a provider of price data for decentralised finance applications, has halted deployments on Aptos, Sui, IOTA and Movement after reports of a possible compromise affecting its Move-language oracle implementations.
At least three DeFi applications have reported losses, frozen operations or precautionary restrictions after Switchboard advised users to temporarily move to alternative oracle providers.
The company said it had not received comparable reports involving its Solana implementation. However, it has not disclosed the root cause of the suspected compromise or said when its four Move deployments will be restored.
On Sui, decentralised exchange Full Sail confirmed that its vaults had lost funds. It said deposits and withdrawals would remain suspended until the integrity of the oracle had been restored and independently verified.
Full Sail did not identify the affected vaults or assets, publish transaction records or provide an estimate of the loss.
The exchange’s vault documentation says users delegate liquidity management to an automated system, which rebalances concentrated positions using real-time market data. Its separate oracle-protection documentation describes safeguards that compare Switchboard prices with prices from on-chain pools, assess updates against between 50 and 70 recent observations, and can block price data or pause emissions.
Full Sail has not said whether those safeguards were activated, whether they covered the affected vaults, or whether they were connected to the reported losses.
Data from DeFiLlama on 31 August placed Full Sail’s total value locked at about $229,000. Its decentralised exchange trading volume was approximately $50 over the previous 24 hours, $2.99m over seven days and $9.10m over 30 days.
Those figures include activity from before the incident and do not show how much value changed as a direct result of it.
The clearest account of the suspected exploitation came from IOTA lending protocol Virtue. It said an attacker had taken control of the signing keys for all 14 oracles on Switchboard’s IOTA mainnet queue.
According to Virtue, the attacker used that access to push IOTA’s reported price to $10m. The attacker then deposited 1 IOTA and minted about 4.94 million VUSD.
Virtue said the price feed was subsequently driven close to zero, resulting in 47 liquidations involving 45 users. The protocol responded by freezing borrowing, repayments, deposits, withdrawals, liquidations and flash loans.
It also warned that VUSD was materially undercollateralised while efforts to address the incident continued. The figures provided by Virtue apply to that protocol and do not quantify the separate, undisclosed loss reported by Full Sail.
Another Sui-based project, Volo, said it had paused vault deposits and withdrawals as a precaution because it depended on Switchboard. Volo said its vaults had not been affected and that user funds remained safe.
The available service information presented a mixed picture. Sui’s status page listed all systems as operational on 31 August, while IOTA’s status page showed mainnet services operating and recorded listed incidents as resolved. Equivalent status evidence could not be established for Aptos or Movement.
The confirmed impact therefore varies between projects. Full Sail has acknowledged a loss but has not quantified it, Virtue has described a price-feed manipulation that led to liquidations and a wide-ranging protocol freeze, and Volo has restricted access as a preventative measure without reporting losses.
Switchboard has not released a complete list of integrations that may have been affected. As a result, the full reach of the suspected Switchboard Move oracle compromise remains unclear across the four networks.
