BlockBeats news: On January 22, after suffering an attack that resulted in a loss of approximately $7 million, Layer-1 blockchain protocol Saga urgently suspended its Ethereum-compatible SagaEVM chainlet. The attack led to unauthorized funds being cross-chain transferred and exchanged for ETH. As a result, its USD-pegged stablecoin, Saga Dollar, subsequently depegged, with its price dropping as low as $0.75.
The Saga team stated that the chain has been paused at block height 6,593,800. Preliminary investigations indicate that this incident involved a series of contract deployments, cross-chain operations, and liquidity withdrawals. However, there has been no consensus failure, validator compromises, or private key leaks. The overall structure of the Saga mainnet remains secure.
Not only is the Saga Dollar affected, but its stablecoins Colt and Mustang are also impacted. The team has already traced the attack funds to specific addresses and is collaborating with exchanges and cross-chain bridges to blacklist these addresses. The chain will remain paused until the full security audit and post-mortem analysis are published.
On-chain data shows that Saga's TVL (Total Value Locked) dropped sharply from approximately $37 million to $16 million within 24 hours, a decline of about 55%. Some security researchers speculate that the attack may involve exploiting cross-chain mechanisms to enable infinite minting of stablecoins. Others suggest that private key exposure cannot be ruled out, but the official has not yet confirmed the specific attack vector.