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Scallop Lend — Deprecated V2 Rewards Contract Flash Loan Exploit

Incident date April 26, 2026

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ResolvedSuiFlash loanCluster: SCALLOP-SUI-2026-04

Estimated loss

$142.7K

Victims identified

more than ten victims identified
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Investigation

95%

Facts and investigation

Attacker: Sui address tied to tx hash 6WNDjCX3W852hipq6yrHhpUaSFHSPWfTxuLKaQkgNfVL — full address TODO

Funds moved to: Routed through Sui-based privacy mixer (Tornado Cash equivalent on Sui)
Compromised contract: deprecated v2 sSUI rewards spool contract (deployed Nov 2023). Core Scallop unaffected.

Timeline: April 26, 2026, 12:50 UTC: Scallop discloses incident on X and freezes affected contract. Attacker exploited the deprecated V2 rewards contract whose last_index variable was never initialized for new staking accounts, causing the contract to treat the attacker position as 20 months old. Attacker deposited ~136,000 sSUI; was credited with ~162 billion reward points; exchanged for ~150,000 SUI. In a single block, briefly tampered with SUI/USDC oracle to amplify gains via flash loan. Funds bridged through Sui privacy mixer. Same day: Scallop team confirms 100% user coverage. April 27: Scallop unfreezes core; attacker reportedly contacts team offering 80% white-hat return.

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