An attacker exploited a vulnerability in Unleash Protocol's smart contracts, resulting in a loss of approximately $3.9 million. The breach was executed through the protocol's multisignature governance system, which allowed unauthorized contract upgrades and fund withdrawals. The stolen assets, including over 1,337 ETH, were funneled through Tornado Cash. While the parent blockchain, Story Protocol, remains unaffected, the incident could hinder its development progress. Unleash Protocol has suspended all operations and is actively investigating the recovery of the stolen funds.