Sui-based platform Volo Protocol said on Wednesday that an attacker drained nearly $3.5 million from three of its vaults, the latest DeFi security breach in a month already rocked by nine-figure exploits.
Volo froze every vault after discovering the attack and informed the Sui Foundation. The stolen assets included Wrapped Bitcoin (WBTC), gold-backed XAUm, and USD Coin (USDC). The remaining total value of $28 million stored in other vaults did not carry any common attack vector, the team said.
Inside the Volo Protocol exploit
Folau described the hack as a security incident in a statement published on Tuesday X Early Wednesday. Only three vaults were affected, and the team said no other part of the protocol shared the same vulnerability.
The project works with on-chain investigators and ecosystem partners to track and recover stolen funds. A full autopsy will be performed once the internal review is completed.
Volo was originally launched as a dedicated liquid staking SUI platform, issuing the Volo Staked SUI (vSUI) token, before being acquired by the Sui NAVI lending protocol in early 2024. The vault products targeted in this incident sit above that staking layer and accept pooled assets and stablecoins as collateral for return strategies.
Volo also moved to reassure users that any losses will not be passed on.
“Volo is prepared to absorb this loss. We will do our best not to pass this on to our users,” Volo Team, He said.
The remediation plan will follow once the damage control operations are over, the protocol said, adding that rebuilding user trust depends on actions, not promises.
The latest results in a brutal month for DeFi
Volo’s loss comes on the heels of a series of major events in April that hurt DeFi. Based on Solana Drifting The protocol lost about $285 million on April 1 elliptical Linked to a suspected North Korean infiltration operation.
After less than three weeks, repeat the protocol kelp DAO was drained of 116,500 ether (rsETH) worth approximately $292 million through hacked LayerZero bridge. Since then, Ethereum DeFi has lost more than 17% of its total value.
stabilizer It also lost more than $128 million due to a vulnerability earlier in the year. Target portfolio sink It cost an individual investor over $280 million across Ethereum and Arbitrum.
The Sui ecosystem has faced similar crises before. Attackers exploited the Cetus exchange for approximately $223 million in May 2025. A flaw in concentrated liquidity pools enabled the attack. Sui and community auditors recovered most of the stolen funds. The total value locked on Sui exceeded $2.6 billion in late 2025. This growth has expanded the attack surface for exploiters. Attackers now target Vault logic and Oracle dependencies more often.
Volo promises to cover the $3.5 million loss without outside help. Depositors will be watching closely when withdrawals reopen. An autopsy should clarify the root cause. It will show whether the defect is isolated or systemic. The results may impact trust in the Sui DeFi ecosystem.
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