AlphaFi Winds Down Sui DeFi Operations After AlphaLend Losses
The protocol has entered maintenance mode, halting new deposits and borrowing while keeping withdrawals open for users.
AlphaFi is winding down its Sui-based DeFi operations after severe undercollateralization in some AlphaLend positions backed by ALPHA left the protocol with bad debt.
The protocol has entered maintenance mode and halted new deposits and borrowing. Withdrawals remain open as AlphaFi processes user exits.
AlphaFi is working with the Sui Foundation on an investigation, remediation measures and efforts to recover outstanding debt. The team has urged users to close positions and withdraw their assets.
Lockup periods for the WAL and ALPHA vaults have been canceled. Users of Slush Strategies can withdraw directly through the Slush wallet.
AlphaFi plans to continue handling withdrawals until the last user completes an exit, after which the team will leave the Sui ecosystem. No end date was provided.
