TL;DR
- The SagaEVM network halted after a $7 million USDC exploit.
- The attack caused the project’s stablecoins to lose their dollar peg.
- The cause is under investigation, with a smart contract flaw suspected.
The Saga blockchain halted operations of its SagaEVM network. An attacker exploited the network and stole $7 million in stablecoin. The stolen funds were in USDC. The Saga team confirmed the incident in an official statement.
The network paused at a specific block height. Developers initiated mitigation efforts immediately. They also identified the attacker’s wallet address. The team is now working with exchanges to recover the funds.
Project’s Stablecoins Lose Their Dollar Peg
The attack directly affected two Saga stablecoins. These assets, named Colt and Mustang, lost their dollar peg. Another token, called “D”, also deviated from its intended value. Its price fell to approximately $0.70.
According to the team’s analysis, the attack was coordinated. The hacker deployed specific smart contracts. Then, they conducted cross-chain operations and withdrew liquidity. Consequently, the network will remain halted until the investigation finishes.
A security expert, Vladimir S., suggested a technical cause. He stated the attacker exploited a flaw in a smart contract. This flaw allowed the minting of “D” tokens without real backing. However, another analyst proposed a different cause.
That analyst, known as Specter, mentioned a compromised private key. This incident follows another hack this week. The Makina Finance protocol lost nearly $5 million.
Data from 2025 shows a total volume of stolen funds at $3.4 billion. This is the highest level since 2022. Immunefi CEO Mitchell Amador provided a crucial fact. Nearly 80% of projects do not survive a major attack.
