Volo Protocol, a DeFi platform on the Sui blockchain, has confirmed a security breach resulting in the loss of approximately $3.5 million from three of its vaults. The attack targeted vaults holding wrapped bitcoin (WBTC), Matridock's tokenized gold token (XAUm), and the stablecoin USDC. Volo has assured users that the remaining $28 million in total value locked (TVL) across other vaults is secure and unaffected by the breach. In response to the incident, Volo has frozen all vaults and is collaborating with the Sui Foundation and onchain investigators to trace the stolen funds. So far, $500,000 has been immobilized onchain to prevent further movement. This breach adds to the growing concerns over DeFi security, following a recent exploit on KelpDAO. To date, DeFi platforms have suffered approximately $7.78 billion in hacks, with bridge protocols accounting for an additional $2.90 billion in losses. Volo plans to release a full post-mortem after completing its investigation.