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Unleash Protocol Smart Contract Notice of Unauthorized Activity, Some User Funds Transferred
BlockBeats News, December 30th, Unleash Protocol, an IPFi platform in the Story ecosystem, announced that its smart contract experienced unauthorized activity, resulting in user funds being drained and transferred.
Initial investigations indicate that an external address gained administrative access through Unleash's multisig governance mechanism and performed an unauthorized contract upgrade, triggering unauthorized asset withdrawals. The assets known to be affected currently include WIP, USDC, WETH, stIP, vIP. The related assets were subsequently moved to an external address through third-party cross-chain infrastructure.
Unleash stated that the incident stemmed from its own governance and permission framework, with no evidence so far of any impact on Story Protocol's contracts, validators, or underlying infrastructure; the impact seems contained within Unleash's relevant contracts and administrative permissions. All protocol operations are currently paused.
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