Chaos Labs Says Oracles Secure After Wallet Attack

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Chaos Labs said its oracle network was not compromised after suspicious activity targeted operational wallets used for routine onchain activity.

Founder and CEO Omer Goldberg said the company went into full lockdown after detecting the activity over the weekend. He said the incident was limited to operational wallets and did not reach the Chaos Oracle Network.

Chaos Labs Rotated Keys After Wallet Attack

Goldberg said Chaos Labs rotated all keys tied to the incident and has not seen further suspicious activity since the attempted attack.

He said authorities and outside cyber specialists working with the company described the activity as consistent with possible nation-state tactics. The investigation is still active, and no specific actor has been named publicly.

Chaos Labs said its oracle network runs in an isolated environment with globally distributed nodes and layered cryptographic controls. The company said that separation protected its pricing infrastructure from the attempted wallet attack.

Operational Wallets Were Targeted, Not Oracle Network

The attempted attack targeted wallets used for day-to-day onchain operations, not the oracle network itself. That distinction is important for DeFi protocols that rely on oracle systems for price and risk data.

A compromised oracle feed could affect liquidations, collateral values and lending markets. Chaos Labs said that did not happen. The company said the incident triggered its highest-severity response because of the sensitivity of oracle infrastructure and the recent rise in attacks against crypto firms.

Tydro paused markets before Chainlink migration

The Chaos Labs incident still prompted caution across parts of DeFi. Borrowing platform Tydro said it paused markets after concerns about price feeds following the Chaos Labs incident. Tydro said no bad prices were pushed and no user positions were affected, but it plans to move to Chainlink before resuming.

Chaos Labs has also faced separate scrutiny after a March oracle issue linked to Aave liquidations. Reports said a roughly 2.85% pricing discrepancy contributed to about $26.9 million in liquidations before parameters were corrected.

For DeFi users, Chaos Labs’ main message is that its core oracle network remained secure. For protocols, the immediate issue is whether operational wallets, key management and incident response controls are strong enough around critical infrastructure.