Another DeFi company loses millions in fresh exploit
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Volo Protocol, a yield-generating platform built on the Sui blockchain, confirmed on Tuesday that it suffered an exploit that drained approximately $3.5 million in assets.
The attack targeted specific digital vaults where users deposit Bitcoin (WBTC), tokenized gold (XAUm), and stablecoins (USDC). To prevent further damage, the team immediately notified the Sui Foundation and froze its systems.
The protocol’s leadership acted quickly to reassure its community, noting that the remaining $28 million in Total Value Locked (TVL) across other vaults was not affected by the breach.
In a public statement, the team pledged to protect its customers from financial harm rather than letting them bear the cost of the attack.
Related: Another Ethereum staking platform halts withdrawals
"Volo is prepared to absorb this loss. We will do our best not to pass this to our users," the protocol wrote on X.
So far, the project has successfully immobilized $500,000 in stolen assets through close coordination with industry partners.
"We detected the attack, immediately notified the Sui Foundation and ecosystem partners to contain the damage, and froze the vaults to prevent any further exposure," Volo Protocol said.
This move prevents those specific funds from being withdrawn or moved.
While the majority of the capital remains missing, a full investigation is currently underway to identify the specific flaw that allowed the heist to occur.
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Rising threats in the digital market
The Volo incident follows closely behind the massive $292 million exploit of Kelp DAO, a major bridge project.
That larger attack has been linked by investigators to the North Korean Lazarus Group and has caused a ripple effect of fear across the decentralized finance (DeFi) market.
Total losses from blockchain-related crimes have now reached staggering levels. According to DeFiLlama, DeFi protocols have lost roughly $7.78 billion to date, while bridge systems account for another $2.90 billion.
Combined, these losses exceed $10 billion, which is roughly equal to the total market value of several top-ranked cryptocurrencies. For now, Volo remains focused on fixing its security and restoring investor trust.
