Virtuals Protocol Addresses Basis Security Incident with Full Compensation Plan

According to Foresight News, EtherMage, a core contributor to Virtuals Protocol, announced via social media that a resolution has been reached with the Basis team regarding a recent security incident. Affected users will receive full compensation without needing to withdraw funds, as the Virtuals treasury will cover the financial shortfall. The team is assisting Basis in implementing security upgrades during the fund return process. The security issue originated from a problem with a 'buffer' wallet required for interaction with the zyfai treasury, while other Basis mechanisms and ACP mechanisms remain unaffected. Previously, BasisOS reported that its on-chain asset management AI agent, Agentic FoF, was compromised due to a security vulnerability, resulting in a loss of approximately $531,000. All treasuries have been temporarily suspended, and withdrawals from Agentic FoF are on hold pending the completion of an internal investigation. Although the Basis treasury is secure, operations have been paused as a precaution, with withdrawal functions still available.