Volo, the DeFi protocol on the Sui blockchain, has announced the successful recovery of nearly all assets stolen in a $3.5 million vault exploit that occurred last week. According to the protocol’s fifth recovery update shared via X, the team recovered the remaining ~64.9 ETH the attacker had obtained, cutting the total net loss to approximately $60,000.
The exploit targeted three Volo vaults, draining USDC, XAUm, and WBTC. The attacker converted roughly half of the WBTC and XAUm into USDC, bridged the funds to Ethereum, and then swapped them into ETH in an attempt to obscure the trail. However, Volo intercepted 19.6 WBTC on the LayerZero bridge before the transaction was completed, and the Sui Foundation intervened to unlock 100.6 XAUm, which were returned to Volo’s custody.
The remaining 115 XAUm that the attacker swapped on Sui remain a challenge due to thin on-chain liquidity, making a DEX swap of that size unworkable. Volo is coordinating directly with MatrixDock to acquire that amount. The XAUm vault restart will take longer than the others, but all other affected vaults are ready to be replenished and will be brought back online shortly.
Volo has committed to covering the residual $60,000 loss out of its own treasury to make all affected users whole. This outcome stands in stark contrast to the broader crypto security landscape in April 2026, which has seen total industry losses exceeding $620 million.
