Layer-1 Protocol Saga Temporarily Shuts SagaEVM Chain After $7M Exploit
Layer-1 community Saga paused its SagaEVM chain after an exploit that moved nearly $7m in tokens to Ethereum, because the group works by means of an ongoing investigation.
Saga mentioned it stopped the chain at block peak 6593800 after figuring out a safety incident on Jan. 21, and it has saved the community paused “out of an abundance of warning” whereas it validates the total influence and patches the weak point and reinforces the system.
“We acknowledge {that a} pause is disruptive. We made this determination as a result of the protection of our neighborhood comes first,” the group mentioned Wednesday in its weblog. “Once remediation is full, we are going to publish a extra complete technical autopsy.”
Saga Identifies Wallet Linked To $7M Exploit
In its investigation replace, Saga mentioned almost $7M in USDC, yUSD, ETH, and tBTC have been transferred to the Ethereum Mainnet, and it recognized the pockets it was extracted to.
The group mentioned it’s coordinating with exchanges and bridge operators to blacklist the attacker’s tackle and assist restoration efforts, whereas it continues forensic evaluation utilizing archive information and execution traces.
Saga described the assault as a coordinated sequence involving contract deployments and cross-chain exercise that resulted in fast liquidity withdrawals.
Chainalysis Estimates $3.4B In Crypto Theft In 2025
Reports on the incident additionally mentioned the attacker bridged belongings to Ethereum and transformed proceeds into ETH through swaps.
Saga mentioned the incident affected the SagaEVM chainlet together with Colt and Mustang, but it surely didn’t have an effect on the Saga SSC mainnet, the protocol’s consensus, validator safety, or different Saga chainlets. It additionally mentioned it discovered no proof of validator compromise, signer key leakage, or consensus failure.
The breach lands as crypto safety stays below strain. Chainalysis estimated the industry saw over $3.4B in theft in 2025, and pointed to giant, concentrated hacks as a key driver of losses.
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