Virtue IOTA Switchboard Oracle Key Compromise — $455K

On August 28, 2026, an attacker compromised the signing keys of 14 Switchboard oracles operating on IOTA mainnet, which fed price data to Virtue, a CDP-based stablecoin protocol issuing VUSD. The attacker used the compromised oracles to push the reported IOTA price to an artificial $10M, triggering the mint of approximately 4.94M VUSD and causing 45 users to be liquidated across 47 liquidation events. Virtue's official loss figure is $455,000; a higher figure of $894,500 reported by DeFiLlama has not been reconciled with the official number. Virtue's protocol was frozen, and a 'make whole' compensation plan was announced but not fully quantified. The same compromised Switchboard oracle infrastructure was linked to a separate, smaller exploit of Full Sail on Sui the following day.