Unleash Protocol Suffers $3.9M Hack, Impacting Story Protocol
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 31 2025- Hack Incident: Unleash Protocol experienced a hack resulting in a loss of approximately $3.9 million, where the attacker gained administrative control through the multisignature governance system, leading to unauthorized contract upgrades and illegal withdrawals, thereby jeopardizing the platform's operational security.
- Funds Movement: The hacker laundered the stolen funds through Tornado Cash, with early investigations indicating over 1,337 ETH was transferred to the mixer, showcasing the attacker's sophistication and potentially causing long-term damage to user trust.
- Impact on Story Protocol: This incident may stall the progress of Story Protocol, as Unleash is one of its most active applications, with the protocol holding $8 million in liquidity by the end of 2025, and the hack could further undermine market confidence in its ecosystem.
- Market Reaction: Following the incident, Story Protocol's token IP dropped from $1.62 to $1.50, indicating market sensitivity to security issues, and the token has significantly declined from a peak of over $13 earlier this year, reflecting investor concerns about the project's viability.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
