VUSD Faces Security Breach Resulting In $13 Million Theft

According to Odaily, VUSD announced on its Telegram channel that Onyx Protocol experienced a security breach, leading to the theft of over $13 million in VUSD. Following the incident, the smart contract was paused, and it has been confirmed that there are no vulnerabilities in the VUSD codebase and reserves. The hacker subsequently sold the stolen VUSD into a liquidity pool, causing a secondary market liquidity loss of approximately $1.5 million. The malicious actor will be blacklisted according to the terms of service, and once the investigation is concluded, VUSD smart contract services will resume, allowing participants to continue arbitrage activities. VUSD remains fully backed by over-collateralized assets, and institutional users can redeem and mint VUSD at market prices. VUSD is collaborating with Onyx DAO and relevant authorities to identify the attacker and plans to explore the necessary licenses for retail redemption in the future. Previously, due to the Onyx theft, VUSD temporarily de-pegged and fell to $0.6599.