Gate News message, April 23 — Volo Protocol confirmed a security breach on April 22 that resulted in the loss of approximately $3.5 million in digital assets. The exploit targeted specific vaults used by customers to deposit Bitcoin, tokenized gold, and stablecoins, though the broader platform remained unaffected. The company notified the Sui Foundation and immediately froze its systems to prevent further unauthorized withdrawals.
In response, Volo Protocol stated it intends to absorb the financial losses rather than transferring the burden to users. The team has also managed to immobilize roughly $500,000 of the stolen assets through coordination with industry partners. Approximately $28 million in total value locked remained secure following the incident.
The breach adds to mounting concerns about security in decentralized finance, following a major exploit involving Kelp DAO that resulted in hundreds of millions in losses. Volo Protocol indicated its immediate priority is to identify the root causes of the exploit and strengthen system security to prevent similar incidents.
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