Saga halts chainlet after $7M exploit depegs stablecoin

Layer-1 blockchain protocol Saga paused its SagaEVM chainlet after a $7 million exploit drained funds through unauthorised cross-chain activity.

The Saga team said the Ethereum-compatible chain was halted at block height 6,593,800 following the incident.

Investigators said the attack involved coordinated contract deployments, cross-chain transfers and liquidity withdrawals.

“There has been no consensus failure, validator compromise, or signer key leakage,”

The Saga team said.

Saga said its wider network remains operational and additional safeguards have been deployed.

The exploit caused Saga’s US dollar-pegged stablecoin to fall sharply, briefly trading at $0.75.

Saga confirmed that its Colt and Mustang stablecoins were also affected by the incident.

The team said it identified the attacker’s wallet and is working with exchanges and bridges to blacklist the address.

Data showed Saga’s total value locked fell from more than $37 million to about $16 million within 24 hours.

A security researcher suggested the exploit may have involved infinite token minting through bridge validation flaws.

At the time of reporting, Ethereum price was $3,009.66.