Unleash Protocol Hack Drains $3.9M After Multisig Exploit, PeckShield Reveals
Here’s how the hack happened. PeckShieldAlert report revealed.
The repeated deposits, from small amounts to batches of 100 ETH, seem designed to hide the source of the stolen funds.
What Assets Were Affected in the Breach
In its official incident notice, Unleash Protocol confirmed that several assets were impacted during the exploit. These include WIP, USDC, WETH, stIP, and vIP. The team stressed that the withdrawals happened outside normal governance rules and were not approved internally.
Importantly, Unleash clarified that there is no evidence of any compromise to Story Protocol, its validators, or its core infrastructure. The issue appears limited strictly to Unleash-specific contracts and admin controls.
Following the discovery, Unleash Protocol immediately paused all operations to prevent further damage. The team is now working with independent security experts and forensic investigators to identify the root cause.
Users have been advised to avoid interacting with Unleash Protocol contracts until further updates are shared through official channels.
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FAQs
The hack happened after an attacker gained unauthorized admin control via the multi-signature system and pushed an unapproved contract upgrade.
Roughly $3.9 million in user funds was drained, including ETH and multiple tokenized assets held within Unleash Protocol contracts.
The breach affected WIP, USDC, WETH, stIP, and vIP, all withdrawn outside approved governance and without internal authorization.
Users should avoid interacting with Unleash contracts until official updates are released, as the team continues forensic and security reviews.
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