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Unleash Protocol reports unauthorized contract activity, with some user funds transferred.
BlockBeats News, December 30 — The IPFi platform Unleash Protocol in the Story ecosystem announced that its smart contract experienced unauthorized activity, resulting in user funds being withdrawn and transferred. Preliminary investigations indicate that an external address gained management permissions through Unleash’s multi-signature governance mechanism and executed an unauthorized contract upgrade, triggering unapproved asset withdrawals. Currently, affected assets include WIP, USDC, WETH, stIP, and vIP. These assets were subsequently transferred to external addresses via third-party cross-chain infrastructure. Unleash stated that the incident originated from its own governance and permission framework, with no evidence suggesting that the Story Protocol’s contracts, validators, or underlying infrastructure were affected. The impact appears to be limited to Unleash-related contracts and management permissions. All protocol operations have been suspended.