Saga

USDC

Saga has <a href="https://medium.com/sagaxyz/sagaevm-security-incident-investigation-update-29a1d2a6b0cd" target="_blank" rel="noreferrer noopener nofollow">paused</a> its SagaEVM blockchain following a security incident that occurred on January 21, 2026, involving coordinated contract deployments and cross-chain activity that resulted in millions of dollars in losses. 
According to an official update from Saga, the exploit led to approximately $7 million in <a href="https://hash.media/hashdesk/ipor-fusion-vault-exploit-causes-336k-usdc-loss-on-arbitrum/" target="_blank" rel="noreferrer noopener">USDC</a> being bridged out of the SagaEVM chain and subsequently converted into Ether. The extracted funds were transferred to a single wallet address, which Saga has publicly identified as 0x2044697623afa31459642708c83f04ecef8c6ecb. 
As a precautionary measure, Saga paused the SagaEVM chain at block height 6,593,800, citing the need to prevent further impact while a full forensic investigation is conducted. The company described the incident as a “coordinated sequence” involving contract deployments, cross-chain transactions, and liquidity withdrawals. 
Saga said its engineering and security teams are currently focused on validating the full scope of the breach using archive data and execution traces. The chain will remain paused while mitigation steps are implemented and affected components are hardened ahead of any potential restart. 
“We recognize that a pause is disruptive,” the company said, adding that the decision was made with user safety as the top priority. Saga emphasized that it will communicate only confirmed facts as findings are finalized. 
In parallel, Saga is working with exchanges and cross-chain bridge providers to blacklist the attacker’s wallet address in an effort to prevent further movement or liquidation of the stolen funds. The company did not disclose whether any of the assets have been frozen at this stage. 
Saga said a comprehensive technical post-mortem will be published once the investigation is fully validated, outlining the root cause of the exploit and the steps taken to remediate the issue. 
The incident highlights ongoing security risks facing cross-chain infrastructure, particularly as blockchain ecosystems grow increasingly interconnected. 
pay3 (pay3.so) is a crypto payment platform that replaces wallet addresses with usernames. Accept USDT, USDC, ETH, and BNB through one simple link: pay3.so/@yourname

Saga pauses SagaEVM after $7M USDC exploit on Jan. 21

HASH

Other articles published on Jan 22, 2026

Vitalik Buterin Says Decentralized Social Is How Ethereum Outlives Its Creators

Can HBAR Hit $1? What It Would Take

JasmyChain Completes Mainnet Migration And Enters Production

What to Expect from Bee Network in 2026

Kaisar Network Explained: Earn From Your Idle Hardware

BNB Chain Launches $650k Trenching Season Across Five Trading Platforms

Join our free newsletter for daily crypto updates!