Saga suffers a $7 million attack, SagaEVM urgently suspends, stablecoin de-pegs and drops to $0.75

【Blockchain Rhythm】On January 22, Layer-1 blockchain Saga suffered a severe blow. The protocol was attacked, resulting in approximately $7 million being illegally transferred cross-chain and exchanged for ETH. Its issued stablecoin Saga Dollar subsequently de-pegged, with the price even dropping to $0.75. In response to the emergency, the Saga team temporarily paused the Ethereum-compatible SagaEVM chainlet.

The pause was set at block height 6,593,800. According to preliminary investigations, this incident involved multiple links—from contract deployment, cross-chain operations, to liquidity withdrawal—forming a complete attack chain. However, it is somewhat reassuring that the official statement indicates no failures at the consensus layer, no validator breaches, or private key leaks, and the mainnet infrastructure remains intact.

The impact was not limited to Saga Dollar. The stablecoins Colt and Mustang, also in the same series, were affected as well. The team has already locked the addresses involved in the attack funds and is working with major exchanges and cross-chain bridge providers to blacklist these addresses. The chain will remain paused until a comprehensive security audit and post-incident analysis report are published.

The data is quite alarming—Saga’s TVL plummeted from $37 million to $16 million within 24 hours, a 55% drop. Industry opinions on the attack methods vary: some security researchers speculate it may have exploited a cross-chain bridge vulnerability to achieve “infinite minting” of stablecoins, while others consider the possibility of internal key leakage. However, the specific details of the attack path have not yet been disclosed by the official sources.