Full Sail DeFi Protocol Winds Down After $91,000 Exploit on Sui

Full Sail, a decentralized exchange operating on the Sui (SUI) blockchain, announced it will wind down its operations following a security breach that resulted in the loss of approximately $91,000.

Attack Details

The attacker exploited a vulnerability in Switchboard’s production code that governs oracle price‑update signing. By adding a malicious key to a live oracle, the attacker caused the network to accept falsified prices that were about 100 times lower than market rates. These false prices were then used to deposit into three vaults, after which the attacker withdrew the inflated value.

Immediate Response

Full Sail paused all deposits and withdrawals on August 29 after confirming the incident. The protocol clarified that the breach did not involve a compromise of its own admin keys, and that direct liquidity pool positions were unaffected.

Compensation Efforts

The team stated that all remaining protocol‑owned liquidity will be returned to users, and that it will absorb any shortfall to prioritize community depositors. Full Sail is awaiting technical details from Switchboard and has not received financial support from Mysten Labs.

Broader Context

This incident adds to a growing list of DeFi projects that have closed in 2026 due to security failures, including Summer.fi, Radiant Capital, Step Finance, and SolanaFloor. According to RootData, 204 crypto projects have shut down, gone dark, or entered bankruptcy so far this year.