Saga Team Halts SagaEVM Network After $7 Million Hack

• Saga suspended the SagaEVM blockchain after an attack that resulted in the withdrawal of $7 million.
• The Saga Dollar stablecoin temporarily lost its peg to the dollar.
• The protocol’s TVL fell by more than 50% in one day.

The Saga team announced the suspension of the SagaEVM blockchain after a security incident that resulted in an attacker withdrawing $7 million. The network was shut down when block 6,593,800 was reached, as reported by the developers in a statement on social network X (formerly Twitter).

In a subsequent message, project representatives explained that the attack involved a coordinated chain of contract deployments, cross-chain activity, and subsequent liquidity withdrawal. As noted by Saga, there were no signs of validator compromise, consensus failures, or key leaks.

According to available information, the network’s basic infrastructure remains stable.

The developers also reported that they had identified the attacker’s address and had begun working with exchanges and bridges to blacklist it. The security incident affected the SagaEVM network and the assets of the Colt and Mustang ecosystems.

Against the backdrop of the incident, the main stablecoin of the Saga Dollar (DUSD) protocol, pegged to the US dollar, temporarily lost its peg. According to CoinGecko, its rate fell to $0.75.

The pressure on the ecosystem also impacted liquidity indicators. According to DefiLlama’s estimate, Saga’s total locked value per day decreased from more than $37 million to approximately $16 million.

An official report on the causes of the hack has not yet been published.

Meanwhile, third-party researchers are putting forward different versions of what happened. A former analyst at Immunefi, known by the nickname Vladimir S, said that the attacker could have issued Saga Dollar “out of thin air.” To achieve this, he allegedly used a helper contract and manipulated IBC mechanisms through user messages.

Another researcher, going by the pseudonym Specter, did not rule out the compromise of a private key. However, he emphasized that there is not enough information available yet to draw any definitive conclusions.

As a reminder, we wrote that the Makina Finance protocol fell victim to an alleged hack of the stablecoin pool, resulting in the withdrawal of approximately $5 million.