Layer-1 community Saga paused its SagaEVM chain after an exploit that moved practically $7m in tokens to Ethereum, because the crew works by an ongoing investigation.
Saga stated it stopped the chain at block top 6593800 after figuring out a safety incident on Jan. 21, and it has saved the community paused “out of an abundance of warning” whereas it validates the complete affect and patches the weak spot and reinforces the system.
“We acknowledge {that a} pause is disruptive. We made this choice as a result of the security of our group comes first,” the crew stated Wednesday in its weblog. “As soon as remediation is full, we’ll publish a extra complete technical autopsy.”
SagaEVM stays paused whereas we finalize the outcomes of our investigation into the Jan 21 exploit.
We’re working with companions on remediation and can publish a autopsy as soon as findings are totally validated. $7M of USDC was bridged out and transformed to ETH.
Extracted funds had been…— Saga ⛋ (@Sagaxyz__) January 22, 2026
Saga Identifies Pockets Linked To $7M Exploit
In its investigation replace, Saga stated practically $7M in USDC, yUSD, ETH, and tBTC had been transferred to the Ethereum Mainnet, and it recognized the pockets it was extracted to.
The crew stated it’s coordinating with exchanges and bridge operators to blacklist the attacker’s deal with and help restoration efforts, whereas it continues forensic evaluation utilizing archive knowledge and execution traces.
Saga described the assault as a coordinated sequence involving contract deployments and cross-chain exercise that led to speedy liquidity withdrawals.
Chainalysis Estimates $3.4B In Crypto Theft In 2025
Studies on the incident additionally stated the attacker bridged property to Ethereum and transformed proceeds into ETH through swaps.
Saga stated the incident affected the SagaEVM chainlet together with Colt and Mustang, but it surely didn’t have an effect on the Saga SSC mainnet, the protocol’s consensus, validator safety, or different Saga chainlets. It additionally stated it discovered no proof of validator compromise, signer key leakage, or consensus failure.
The breach lands as crypto safety stays below strain. Chainalysis estimated the trade noticed over $3.4B in theft in 2025, and pointed to massive, concentrated hacks as a key driver of losses.
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