Sui largest lending protocol Scallop suffered an attack, losing 150,000 SUI, and promised full compensation.

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The Sui ecosystem lending protocol Scallop suffered a side contract exploit, resulting in a loss of approximately 150K SUI (about $525,000) from the sSUI spool rewards pool. The protocol has frozen the affected contract and committed to covering 100% of the losses, with user funds remaining unaffected. (Context: TAIPEI DEFI ROUND Meetup: Scallop x Sui x GSR discuss DeFi trends) (Background: Attack Analysis | Step-by-step breakdown of the $116M Mango drain, exploiting oracle vulnerabilities to short) The Scallop lending protocol stated in an official announcement tonight that a side contract related to its sSUI spool rewards pool was exploited, leading to the outflow of approximately 150,000 SUI, estimated at $525,000 based on current market prices. The protocol stated that the affected contract has been frozen immediately, the core contracts remain intact, and all other liquidity pools are unaffected. 🚨 SECURITY INCIDENT NOTICE We have identified an exploit affecting a side contract related to Scallop’s sSUI spool rewards pool, resulting in a loss of approximately 150K SUI. The affected contract has been frozen. Our core contracts remain safe and only the sSUI rewards pool… — Scallop (@Scallop_io) April 26, 2026 Only the sSUI rewards pool was affected; core contracts are secure. Scallop stated that the scope of this incident is strictly limited to the sSUI spool side contract and does not indicate an issue with the protocol's main architecture. sSUI is the yield-bearing token received by users after staking SUI on Scallop. The damage occurred in the peripheral contract responsible for distributing spool rewards, rather than the core lending logic that manages user principal. Liquidity pools for other assets, including USDC, USDT, and wETH, continue to operate normally. The protocol will cover the full loss; users need not worry. Scallop explicitly committed in the announcement to cover 100% of the losses and will not pass the deficit on to users. The team is currently actively investigating the attack vector and fund flow, and stated that a full post-mortem report will be released in the near future. For users holding sSUI or using Scallop’s lending services, the protocol emphasized that no action is required.

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Published:2026-04-26 13:36:55

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