Saga has temporarily halted the operation of the SagaEVM blockchain due to a large-scale hack, resulting in the hacker withdrawing assets worth over $7 million. The network was stopped after reaching block 6,593,800.
This is reported by Finway
Incident Details and Ecosystem Impact
- The SagaEVM blockchain was suspended following an attack that led to a loss of $7 million.
- The Saga Dollar stablecoin temporarily lost its peg to the US dollar.
- The total value locked in the protocol dropped more than half within a day.
“SagaEVM was halted at block height 6,593,800 in response to a confirmed exploit on the SagaEVM chain. Mitigation efforts are ongoing, and the team is fully focused on finding a solution. Further updates will be provided after details are confirmed.”
Developers explained that the attack involved a complex chain of contract deployments, inter-network activity, and subsequent liquidity withdrawal. According to the Saga team, no signs of validator compromise, consensus issues, or private key leaks were detected, and the underlying infrastructure of the network remains stable.
It has been reported that the hacker’s address has been identified, and collaboration with cryptocurrency exchanges and inter-network bridges has begun to block the perpetrator. The security incident affected not only SagaEVM but also the ecosystem projects Colt and Mustang.
Saga Dollar Lost Stability, TVL Plummeted
In the wake of the attack, the primary stablecoin Saga Dollar (DUSD), pegged to the US dollar, temporarily lost its value: according to CoinGecko, the DUSD rate dropped to $0.75.
Key data on the Saga Dollar stablecoin. Data: CoinGecko.
The total value locked in the Saga network (TVL) decreased by more than half in a day—from over $37 million to approximately $16 million, according to DefiLlama.
An official technical report on the causes of the hack has not yet been published, but independent researchers are offering their theories. For instance, former Immunefi analyst Vladimir S suggested that the hacker might have created new Saga Dollars “out of thin air” through a helper contract and manipulation of users’ IBC messages. Another researcher using the pseudonym Specter does not rule out that a private key leak could be the cause but notes that there is currently insufficient information for definitive conclusions.
The investigation into the causes of the attack is ongoing, and the Saga team is working on restoring network operations and stabilizing the ecosystem.