Volo Protocol Loses $3.5M in Sui Hack, Commits to Absorb Losses and Freeze Hacker Funds

Gate News message, April 22 — Volo Protocol, a yield vault operator on Sui, announced yesterday (April 21) that it has begun freezing stolen assets following a $3.5 million exploit. Hackers looted WBTC, XAUm, and USDG from Volo Vaults, marking the latest major DeFi security breach in a historically severe month for the sector.

Volo has successfully intercepted and blocked attempts to swap 19.6 WBTC (worth approximately $1.5 million) into unrecoverable assets, following an earlier $500,000 freeze executed in coordination with ecosystem partners. The protocol committed to absorbing losses and is working with partners to recover the frozen tokens. Volo also froze all its vaults as a precautionary measure while conducting a full investigation; approximately $28 million in TVL across other vaults remains secure, as the exploit targeted only three vaults via an admin key compromise.

Suilend confirmed that none of its markets were affected and user funds remain safe. SUI is trading at $0.97, up 2.72% over the past 24 hours. Total value locked on the Sui network declined 3.4% during the same period, dropping approximately $20 million. April has seen DeFi protocols suffer nearly 4 times the combined losses of the first three months of 2026.