Saga Halts On-Chain Operations After $7 Million Attack Loss, Stablecoin Plunges to $0.75

BlockBeats News, January 22nd, after suffering an attack and losing approximately 7 million USD, the Layer-1 blockchain protocol Saga has urgently paused its Ethereum-compatible SagaEVM chainlet. The attack led to unauthorized funds being moved cross-chain and exchanged for ETH, causing its stablecoin Saga Dollar to subsequently destabilize, with the price dropping to as low as 0.75 USD.

The Saga team stated that the chain has been paused at block height 6,593,800. Initial investigation shows that the event involved a series of contract deployments, cross-chain operations, and liquidity withdrawals, but did not involve a consensus failure, validator compromise, or key leak; the overall structure of the Saga mainnet remains secure.

Not only Saga Dollar was affected; its stablecoins Colt and Mustang were also impacted. The team has locked the addresses of the attack funds and is working with exchanges and cross-chain bridges to blacklist the addresses. The chain will remain paused until a full security audit and post-mortem analysis are conducted and disclosed.

On-chain data shows that Saga's TVL plummeted from around 37 million USD to 16 million USD within 24 hours, a drop of about 55%. Some security researchers speculate that the attack may be related to exploiting the cross-chain mechanism to achieve stablecoin "infinite minting," while some analyses suggest the possibility of key leakage. However, the official confirmation of the specific attack vector is pending.