Volo Protocol freezes vaults, halts WBTC bridge after $3.5M Sui exploit and pledges to cover user losses

Volo Protocol, a liquid-staking vault operator on the Sui blockchain, reported a roughly $3.5 million exploit on April 21–22 that drained assets from several vaults, including WBTC and XAUm and a USD-pegged token (reported variably as USDG or USDC) ^{[1] [2] [3]}.

The team moved quickly to freeze affected vaults and says it has frozen part of the stolen funds; it also blocked an attempted bridge of the funds to WBTC. Volo has pledged to absorb the losses and reported that about $28 million in TVL across unaffected vaults remains secure after the rapid containment ^{[1] [3] [2] [4]}.

Volo has committed to cover user losses and implemented immediate containment measures, including freezing vaults and part of the stolen funds, while unaffected vaults remain secure according to the team ^{[1] [2]}.