Volo Protocol suffered a $3.5 million loss due to an attack and stated it will cover the user losses itself.

Volo Protocol issued a security incident update on the X platform, stating that its Vaults were attacked, and approximately $3.5 million in assets (including WBTC, XAUm, and USDC) were transferred out. The team immediately detected the anomaly and notified the Sui Foundation and ecosystem partners, while freezing the relevant vaults to prevent further losses. Currently, all Vaults are suspended pending full post-incident analysis and remediation. The project stated that the vulnerability only affected three specific Vaults; the remaining approximately $28 million in TVL vaults were unaffected, and there was no shared attack path, so the funds are safe. Furthermore, Volo emphasized that it will bear the losses and strive to avoid transferring the risk to users. It is currently collaborating with on-chain security agencies to advance the recovery of funds and the investigation, and will release a full review and remediation plan later.