Sui Ecosystem Lending Protocol AlphaFi Announces Orderly Shutdown

The Sui ecosystem DeFi protocol AlphaFi has announced an orderly shutdown and has now entered maintenance mode. Withdrawals remain open, but no new deposits or loans will be accepted. AlphaFi stated that some borrowing positions collateralized by ALPHA were under-collateralized, leading to bad debts in the protocol. The Sui Foundation's security team discovered this and worked with the project team to address the issue. Currently, the bad debts have been fully covered, and the protocol remains solvent, ensuring user funds are safe. Users are advised to close their positions and withdraw their assets. Slush Strategies users can now directly withdraw funds from the Slush Wallet, and the WAL treasury's lock-up period has been canceled. SUI, WAL, DEEP, and USDC strategies can be withdrawn immediately; the ALPHA treasury has also ceased operations and canceled the lock-up period.

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