Oracle network switches suspend four chains due to potential mobility compromise risk

Switchboard suspended Move-based oracle operations on Aptos, Sui, IOTA and Movement due to potential security vulnerabilities. In the IOTA Oracle incident, a price source was tampered with to US$10 million, resulting in approximately 4.94 million VUSD being minted. The incident resulted in the liquidation of 45 users. Investigators are examining potential loopholes. Switchboard said no similar issues were reported on Solana, but advised users to migrate temporarily.

Switchboard stops Move deployment, Solana does not experience similar issues

Switchboard has suspended oracle operations on Aptos, Sui, IOTA, and Movement after contributors identified potential security vulnerabilities related to Move deployment. This coordinated shutdown affects applications that use their data sources for prices, collateral valuations, clearing and other automated decentralized financial functions.

Alert: Oracle network Switchboard has suspended operations on Aptos, Sui, IOTA, and Movement after identifying potential vulnerabilities that affect its Move implementation. No similar issues were found on Solana, but users are advised to migrate temporarily.

These blockchains themselves can still be run, and the suspension only applies to oracle network deployments running in these ecosystems. Contributors have coordinated with affected teams and security organizations, and investigators are reviewing the incident and determining whether other applications have been exposed.

IOTA's US$10 million oracle pricing event triggers DeFi risk

The investigation stems from an IOTA incident involving an allegedly hacked oracle key that pushed the source of asset prices to $10 million. The tampered valuation was then used against Virtue, an IOTA-based mortgage debt position agreement.

According to incident reports, the attacker used the tampered price source to inflated the value of collateral and minted approximately 4.94 million VUSD. The incident also triggered a liquidation, affecting 45 users.

Basically, Virtue allows users to mint VUSD after depositing assets such as IOTA and stIOTA as collateral. Therefore, accurate external pricing is critical to maintaining collateral rates and determining when to liquidate positions.

However, when the oracle reports extreme prices, smart contracts may view relatively small collateral deposits as assets worth much above market value. This distortion affects borrowing limits, debt creation and automatic clearing until erroneous data is removed.

However, Switchboard has not publicly confirmed that the reported IOTA incident is the cause of the entire potential vulnerability. Its initial disclosure did not identify the root cause, attacker, confirmed losses or the number of applications affected.

The technical analysis report has not yet been released. Therefore, the available information cannot determine whether the problem originated from contract code, signing certificate, infrastructure or other components.

Switchboard stopped Move deployment, Solana did not experience similar problems

The four suspended deployments share Move-based smart contract infrastructure, making the common architecture the core of the investigation. Move was originally developed by Facebook for the Diem blockchain project. It later became the basis for Aptos and Sui, and IOTA adopted the Move virtual machine through its Rebased upgrade. The architecture will be launched on the main network in May 2025 and introduces a programmable Move-based first layer.

Still, the shared programming environment does not prove that Move is vulnerable. Known issues are limited to Switchboard's Move implementation on affected networks that could be compromised.

At the same time, there have been no similar reports involving this provider's implementation on Solana. However, the investigation is still ongoing and users are advised to temporarily migrate to other oracle solutions.

Therefore, this incident highlights how Oracle failures can spread rapidly in DeFi systems, as applications rely on external prices for automated decisions. Multiple providers, deviation limits, circuit breakers, and emergency suspensions can limit risk exposure when a data source behaves abnormally.

For developers and users, the current core issues are precise attack vectors, number of applications affected, and recovery schedules. Until investigators release their results, the suspended Move deployment will remain the clearest control measure taken against Aptos, Sui, IOTA and Movement.