Virtuals Protocol core contributors: Users affected by Basis will receive full compensation, and the Virtuals treasury will cover the funding shortfal...
TL;DR
Virtuals Protocol will fully compensate users affected by Basis's security breach, covering the shortfall with its treasury. The team is assisting Basis with security upgrades, as the incident involved a wallet issue, not core mechanisms.
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According to Foresight News , EtherMage, a core contributor to the Virtuals Protocol, tweeted that he has communicated with the Basis team to determine the follow-up solution. Affected users will receive full compensation without needing to withdraw funds, and the Virtuals Vault will cover the funding shortfall. The team is assisting Basis in completing security upgrades during the fund return process. This security incident stemmed from a problem with a "buffer" wallet required by Basis to interact with the zyfai Vault; other Basis mechanisms and ACP mechanisms were unaffected.
According to a previous report by Foresight News , BasisOS tweeted that its on-chain asset management AI agent, Agentic FoF, was compromised due to a security vulnerability, resulting in the leakage of approximately $531,000. All vaults are currently suspended, and withdrawals from Agentic FoF have also been halted pending the completion of an internal investigation. Basis vaults are secure, but operations have been suspended as a precaution; withdrawal functionality remains available.