Full Sail Becomes 2026’s Latest Protocol to Close After a Hack
Full Sail, a decentralized alternate, is winding down on Sui (SUI) after an attacker drained roughly $91,000 from three of its vaults on August 29.
The closure makes the DeFi protocol the most recent 2026 casualty of a safety failure somewhat than weak demand.
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Full Sail Winds Down After $91,000 Exploit
Full Sail stated the attacker exploited Switchboard manufacturing code that governs who can signal oracle worth updates. The attacker then added a key they managed to a stay oracle.
Once the community accepted that key, false costs appeared legitimate. The attacker pushed costs to roughly 100 occasions under market and deposited into the affected vaults. Restoring the costs then allowed a withdrawal price greater than the deposit.
“This was not a Full Sail admin key compromise,” the group added.
Direct liquidity pool positions escaped the assault. Full Sail paused the deposits and withdrawals after confirming the incident on August 29.
Virtue individually reported about $455,000 in losses tied to the identical Switchboard incident. Switchboard, in the meantime, stated contributors halted its community on Aptos, Sui, Iota, and Movement.
Full Sail added that Switchboard had not equipped the technical particulars it requested as of September 1, nor dedicated funds towards compensation. Mysten Labs additionally reportedly declined a request for monetary help.
“All remaining protocol owned liquidity goes to customers, and the group will soak up the shortfall so neighborhood depositors are compensated first,” Full Sail famous. “We will comply with with a detailed incident report and a separate reflection on what led to the choice to wind down.”
Hacks Keep Closing Crypto Projects in 2026
Full Sail joins a lengthening 2026 checklist of groups that closed after a breach somewhat than a funding squeeze. Decentralized Finance (DeFi) platform Summer.fi wound down after a $6 million exploit hit its Lazy Summer Protocol.
Radiant Capital ended DAO operations in June, 18 months after shedding greater than $50 million. Step Finance and SolanaFloor closed in February following a treasury hack.
The sample is now seen within the totals. RootData counts 204 crypto initiatives that shut down, went dark, or entered bankruptcy in 2026.
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