Sui-Based DeFi Protocol AlphaFi Announces Shutdown

Sui ecosystem DeFi protocol AlphaFi has initiated an orderly shutdown process and entered maintenance mode. New deposits and loans are disabled, though existing users can still close positions and withdraw assets. The protocol previously faced bad debt due to under-collateralized positions involving $ALPHA, but reports that all bad debt has been covered and user funds remain safe. AlphaFi will continue to work with the Sui Foundation on recovery efforts before officially exiting the ecosystem.