Switchboard, a decentralized oracle provider, announced it has suspended its Move-language deployments across Aptos, Sui, IOTA, and Movement following reports of a potential compromise. While the provider noted no similar issues on its Solana implementation, it has yet to identify the root cause or establish a timeline for restoring the affected Move networks.
At least three protocols have reported financial losses, asset freezes, or precautionary access restrictions. Switchboard has urged affected users to temporarily transition to alternative oracle providers until the issue is resolved.
The Sui-based decentralized exchange Full Sail disclosed that its vaults suffered financial losses and that all deposits and withdrawals have been indefinitely paused. The exchange did not specify which vaults or assets were impacted, nor did it provide transaction records or quantify the damage.
According to Full Sail’s documentation, users delegate liquidity management to an automated system that utilizes real-time market data to rebalance concentrated positions. Additionally, the protocol features oracle-protection mechanisms that compare Switchboard prices against on-chain pool prices and can block updates if they deviate from recent observations. However, Full Sail has not clarified whether these safeguards activated or how they relate to the reported losses.
Data from DefiLlama shows Full Sail held approximately $229,000 in total value locked as of August 31. The platform recorded a rolling 24-hour decentralized exchange volume of just over $50, $2.99 million over seven days, and $9.10 million over 30 days. These figures include pre-incident activity and do not reflect the exact value lost due to the breach.
The most detailed account of the exploit came from IOTA credit protocol Virtue. The protocol revealed that an attacker compromised the signing keys controlling all 14 oracles on Switchboard’s IOTA mainnet queue, artificially driving IOTA’s reported price to $10 million. The attacker deposited 1 IOTA and minted approximately 4.94 million VUSD before the feed was corrected.
Virtue reported that the subsequent price correction pushed the feed near zero, triggering 47 liquidations across 45 users. In response, the protocol froze all borrowing, repayment, deposits, withdrawals, liquidations, and flash loans, warning that VUSD is materially undercollateralized during the ongoing remediation process.
On the Sui network, Volo announced a precautionary pause on vault deposits and withdrawals due to its dependency on Switchboard, though it confirmed its vaults remained unaffected and user funds were secure.
Network status pages indicate that Sui maintained all systems operational on August 31, while IOTA reported that its mainnet services were operating with listed incidents resolved. Equivalent status confirmation was not provided for Aptos or Movement.
While the verified impact is uneven, it is undeniably material: a confirmed yet unquantified loss at Full Sail, a detailed manipulation event and protocol freeze at Virtue, and a preventive access pause at Volo. Because Switchboard has not released a complete list of affected integrations, the full application footprint of this suspected Switchboard Move oracle compromise remains unresolved.
