Saga Pauses SagaEVM Chainlet After $7 Million Exploit

Layer-1 blockchain protocol Saga paused its SagaEVM chainlet after a $7 million exploit that saw unauthorized funds bridged out and converted into Ether. The Saga team announced in an X post on Wednesday that it had paused the Ethereum-compatible chain at block height 6,593,800. In a follow-up Medium post, the team said the security incident appears to have "involved a coordinated sequence of contract deployments, cross-chain activity, and subsequent liquidity withdrawals." The team added there has been "no consensus failure, validator compromise, or signer key leakage" and said the broader Saga network "remains structurally sound." It also said it has launched additional safeguards to prevent similar attacks.

Saga said the platform’s other stablecoins, Colt and Mustang, were also affected. The chain will stay paused until engineering and security teams investigate further and publish a full post-mortem. The team said it had identified the address where the funds were sent and is "working with exchanges and bridges to blacklist this address." Saga’s US dollar-pegged stablecoin de-pegged on Wednesday at around 10:16 pm UTC, falling to $0.75, according to CoinGecko.

DefiLlama estimates Saga’s total value locked fell from over $37 million to $16 million over the prior 24 hours. No post-mortem has been released.

Key Topics

Crypto, Saga, Sagaevm, Saga Dollar, Colt, Mustang