TechFlow reports that Virtual USD (VUSD) released a statement this morning confirming that the Onyx protocol was hacked, resulting in over $13 million worth of VUSD being stolen. Following the attack, the VUSD contract was paused, although transfer functionality continued. The hacker dumped the stolen VUSD on secondary markets, causing approximately $1.5 million in liquidity loss.
The VUSD team plans to implement a blacklist against malicious actors and stated that institutional users can still operate at the 1:1 USD exchange rate, while participants in secondary markets will be subject to market prices. VUSD remains backed by over-collateralized assets. The team is collaborating with Onyx DAO on the investigation and is considering applying for a retail redemption license. The contract pause will be lifted shortly.
