Full Sail Becomes 2026's Latest Protocol to Close After a Hack

Full Sail, a decentralized exchange, is winding down on Sui (SUI) after an attacker drained roughly $91,000 from three of its vaults on August 29. The closure makes the DeFi protocol the latest 2026 casualty of a security failure rather than weak demand. Full Sail Winds Down After $91,000 Exploit Full Sail said the attacker exploited Switchboard production code that governs who can sign oracle price updates. The attacker then added a key they controlled to a live oracle. Once the network accepted that key, false prices appeared valid. The attacker pushed prices to roughly 100 times below market and deposited into the affected vaults. Restoring the prices then allowed a withdrawal worth more than the deposit. This was not a Full Sail admin key compromise, the team added. Direct liquidity pool positions escaped the attack. Full Sail paused the deposits and withdrawals after confirming the incident on August 29. Virtue separately reported about $455,000 in losses tied to the same Switchboard incident. Switchboard, meanwhile, said contributors halted its network on Aptos, Sui, Iota, and Movement. Full Sail added that Switchboard had not supplied the technical details it requested as of September 1, nor committed funds toward compensation. Mysten Labs also reportedly declined a request for financial support. All remaining protocol owned liquidity is going to users, and the team will absorb the shortfall so community depositors are compensated first, Full Sail noted. We will follow with a detailed incident report and a separate reflection on what led to the decision to wind down. Hacks Keep Closing Crypto Projects in 2026 Full Sail joins a lengthening 2026 list of teams that closed after a breach rather than a funding squeeze. Decentralized Finance (DeFi) platform Summer.fi wound down after a $6 million exploit hit its Lazy Summer Protocol. Radiant Capital ended DAO operations in June, 18 months after losing more than $50 million. Step Finance and SolanaFloor closed in February following a treasury hack. The pattern is now visible in the totals. RootData counts 204 crypto projects that shut down, went dark, or entered bankruptcy in 2026.