New hackers attack DeFi market: Volo project suffers huge losses

The Volo protocol built on the Sui network suffered a security vulnerability, resulting in a loss of approximately US$3.5 million, prompting the team to take quick action to control the losses.

The project explained that the attack targeted three vaults containing assets such as WBTC and USDC, and that the vulnerability was discovered and immediately addressed by freezing the affected wallets, before temporarily extending the procedure to all vaults until the investigation is completed.

The team confirmed that the remaining assets, estimated at around $28 million, were not affected by the hack, indicating that the vulnerability was limited and did not extend to the rest of the system.

The team is also currently working with security agencies and experts to track and recover the funds.

In a later update, the protocol announced that it would freeze approximately $500,000 in assets related to the attack and block attempts to move some of the stolen Bitcoin outside the network.

The team emphasized its willingness to bear losses without burdening users and promised to release a detailed report on the incident and a compensation plan later.

The hack was part of a series of attacks targeting the decentralized finance sector in April, reflecting ongoing security challenges in the space.

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