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Unleash Protocol Smart Contract Notice of Unauthorized Activity, Some User Funds Transferred

2025.12.30 17:37:43

Dec. 30 — Unleash Protocol, an IPFi platform built on the Story ecosystem, announced a security incident involving its smart contracts: unauthorized activity led to the draining and transfer of user funds. Initial probes show an external address exploited Unleash’s multisig governance mechanism to gain administrative access, then executed an unauthorized contract upgrade that enabled unauthorized asset withdrawals. Affected assets currently identified include WIP, USDC, WETH, stIP and vIP. The assets were later transferred to an external address via third-party cross-chain infrastructure. Unleash noted the incident originated from its own governance and permission framework, with no evidence to date of impact on Story Protocol’s contracts, validators or underlying infrastructure. The impact appears contained to Unleash’s relevant contracts and administrative permissions. All protocol operations are currently paused.
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