Scallop, a lending protocol on the SUI blockchain, has confirmed a security incident that resulted in the loss of roughly 150,000 SUI coins. At current prices, that’s about $142,000.
The company said the attack exploited a vulnerability in a “spool” subcontract tied to its sSUI reward pool. Officials stressed that only that reward pool was affected, not the protocol’s main contracts. All other liquidity pools and user assets remained safe.
Quick Response and Recovery
Once the breach was detected, Scallop froze the compromised contract to stop further losses. In a later update, the team said core contracts had been reactivated and all platform transactions were back to normal. Deposit and withdrawal functions never stopped working during the incident.
The team also clarified that the problem was limited to an old, now-defunct rewards agreement, not the main protocol. User deposits were never at risk.
Background and Context
This hack comes as no surprise—the crypto market has seen a string of weekend attacks recently. Scallop’s swift response and decision to fully cover the losses might help reassure users. Still, the incident is a reminder that even minor side contracts can create big security holes.
Scallop promised to compensate the full amount lost, which should soothe some nerves. Whether this will affect user trust going forward remains to be seen.
This is not investment advice.
