Autor Cointelegraph By Helen Partz

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, plans to shut down after a security incident involving oracle provider Switchboard resulted in user losses.Full Sail took to X on Tuesday to announce that the protocol is winding down, immediately disabling new deposits and liquidity provider (LP) reward claims. Regular pools will move to withdrawal-only mode after final security checks, with compensating users the protocol’s top priority, Full Sail said.The decision follows a security incident last week that affected Full Sail’s automated vaults following a suspected compromise of Switchboard’s oracle infrastructure.Full Sail first disclosed the incident on Saturday, saying it had confirmed a loss of funds and paused deposits and withdrawals while it investigated. Switchboard said in an X post on Saturday that it was investigating a potential compromise of its Move-based implementations and had halted its network on Aptos, Sui, IOTA and Movement.Full Sail later said an attacker removed about $91,000 from three of its vaults. Virtue, a stablecoin lending protocol based on IOTA (IOTA), separately reported about $455,000 in losses and said the backing of its VUSD stablecoin had been impaired.Full Sail said it will use its remaining protocol-owned liquidity to compensate users, while the team will cover any shortfall so community depositors are repaid first. The protocol expects to publish withdrawal and claim instructions within the coming days.Related: More Markets lending reserve drained for $9.3M: BlockaidCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Latest NewsPublishedSep 2, 2026

Thailand is tightening oversight of crypto transfers, including transactions involving self-custodial wallets, as it moves to align with global Anti-Money Laundering (AML) standards.Thailand’s Securities and Exchange Commission (SEC) issued new Travel Rule regulations requiring digital asset operators to collect information about parties involved in crypto transfers, the regulator announced Wednesday.The rules will take effect on Feb. 27, 2027, giving crypto businesses nearly six months to develop systems for transmitting, receiving and monitoring transaction information.Thailand joins a growing global push to track who sends and receives crypto, as the Financial Action Task Force (FATF) estimated that 83% of surveyed jurisdictions had passed Travel Rule legislation as of 2026.Self-custodial wallets face ownership checksUnder the new framework, Thai digital asset operators must verify the ownership or control of self-hosted, or self-custodial, wallets when customers send crypto to or receive it from those wallets.Unlike wallets managed by centralized exchanges (CEXs) or custodians, self-custodial wallets give users direct control over the private keys needed to access their crypto.Operators must also retain information accompanying every digital asset transaction for at least five years and make the records available for regulatory examination.The requirements put more responsibility on crypto companies to identify the parties behind transfers, including those involving self-custodial wallets. Pornanong Budsaratragoon, secretary-general of Thailand’s SEC, said the rules aim to “reduce the risk of digital asset operators being used for money laundering and terrorist financing.”Thailand moves from consultation to final rulesThe final rules follow two rounds of public consultation this year, starting with proposed principles in March and a draft notification in June. The SEC said most stakeholders supported the proposals.The Travel Rule comes as Thailand considers expanding access to other regulated crypto products. On Monday, the SEC proposed allowing intermediaries to offer retail investors access to certain crypto derivatives traded on regulated overseas exchanges.Days earlier, the regulator advanced draft rules for spot Bitcoin and Ether exchange-traded funds (ETFs), while also seeking feedback on requirements for foreign digital asset custodians used by funds investing in crypto.Magazine: Thailand’s 0% crypto tax. Bitcoin Red Team forced to use Chinese AI: Asia Express