The post Unleash Protocol Suffers Breach, Unauthorized Withdrawal Detected appeared on BitcoinEthereumNews.com.

TLDR Unleash Protocol detected unauthorized activity, leading to the withdrawal of user funds. The breach originated from unauthorized control of Unleash’s multisig governance system. Affected assets include WIP, USDC, WETH, stIP, and vIP, transferred using third-party infrastructure. Unleash Protocol paused all operations and is reviewing multisig activity and governance processes. The investigation is ongoing, and users are urged to refrain from interacting with contracts until further notice. Unleash Protocol, a decentralized finance (DeFi) platform built on the Story Protocol ecosystem, designed to facilitate Intellectual Property Finance (IPFi), suffered a breach. The platform detected unauthorized activity involving its smart contracts, resulting in the withdrawal and transfer of user funds. The breach stemmed from an externally owned address gaining unauthorized control of Unleash’s multisig governance and initiating an unauthorized contract upgrade. Unauthorized Activity Originates from Governance Framework According to the Unleash Protocol team notice that was shared on X, “the breach occurred through its multisig governance system, which allowed an unauthorized contract upgrade.” This upgrade facilitated the withdrawal of funds that were not approved by the Unleash team. The assets affected in this breach include WIP, USDC, WETH, stIP, and vIP. The withdrawn assets were then bridged using third-party infrastructure and transferred to external addresses. Unleash Protocol Incident Notice Earlier today, we detected unauthorized activity involving Unleash Protocol smart contracts, which led to the withdrawal and transfer of user funds. Our initial investigation indicates that an externally owned address gained administrative… — Unleash Protocol (꧁IP OS꧂) (@UnleashProtocol) December 30, 2025  At this stage, the investigation shows no evidence of compromise within Story Protocol’s contracts, validators, or underlying infrastructure. The breach appears to be limited to Unleash Protocol-specific contracts and administrative controls. The team is currently investigating further, with a focus on determining how the external address gained control of the multisig governance…

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Filed under: News - @ December 30, 2025 1:21 pm