Wasabi Protocol Exploit Tops $5M Across Multiple Blockchains, Security Firms Say

Wasabi Protocol has suffered a major exploit exceeding $5 million, with attackers draining funds across several blockchains, according to blockchain security firms.

Multi-Chain Breach Spreads Across Major Networks

Security researchers including PeckShield, Blockaid, and CertiK reported that the attack impacted multiple ecosystems, including Ethereum, Base, Berachain, and Blast. The exploit was enabled by a compromised admin key linked to the protocol’s deployer wallet, which allowed attackers to upgrade smart contracts and gain privileged access.

Blockaid stated that liquidity provider share tokens issued by affected vaults should be treated as compromised, warning that underlying assets may already be drained or remain at risk while the compromised key is active.

Stolen Assets Bridged and Dispersed

Cyvers and other analysts reported that attackers extracted multiple tokens, including WETH, USDC, PEPE, cbBTC, AERO, and VIRTUAL. The funds were consolidated into ETH, then bridged back to Ethereum and spread across multiple wallets to obscure tracking and recovery efforts.

Some forensic traces suggested that Tornado Cash-funded accounts may have been involved in obtaining administrative permissions tied to Wasabi’s LongPool, ShortPool, and Vault contracts.

Protocol Response and Precautionary Measures

The team behind Wasabi confirmed it is investigating the breach and urged users not to interact with its contracts. Virtuals Protocol said its systems remain secure but temporarily froze margin deposits linked to Wasabi as a precaution.

Part of Broader DeFi Exploit Wave

The incident adds to a broader surge in DeFi attacks, with more than 25 protocols reportedly hacked in recent weeks, resulting in losses exceeding $600 million across the ecosystem.