Hackers Target Volo, Stealing $3.5 Million from WBTC and USDC Pools

The Volo protocol, which facilitates liquid staking on the Sui blockchain, has fallen victim to a cyberattack, resulting in the theft of approximately $3.5 million from its liquidity pools.

🔒 Security Incident Update — Volo Protocol

We are addressing our community directly regarding a security incident that occurred today. Volo is prepared to absorb any loss.

Details of the incident:

— Volo (@volo_sui) April 21, 2026

The breach primarily impacted reserves for WBTC, XAUm, and USDC, while other pools with $28 million in assets remained unaffected. In response to the attack, Volo's developers swiftly froze the compromised smart contracts to prevent further fund outflow.

Working in conjunction with the Sui Foundation and other partners, the team has successfully blocked some of the stolen assets. They managed to intercept 19.6 WBTC that the attacker tried to withdraw through a cross-chain bridge, along with freezing an additional $500,000 in various assets.

To address the losses, Volo intends to utilize its own reserves. The team is currently conducting an internal investigation in collaboration with on-chain analysts to identify the perpetrators. A comprehensive report detailing the incident and a reimbursement strategy will be made available soon.

This incident follows a series of high-profile hacks, including attacks on the ENS gateway eth.limo and the cloud service provider Vercel, as well as a breach of the liquid restaking protocol Kelp, which lost around $293 million.