tl;dr
Sui-based protocol Cetus suffered a $223 million exploit on May 22, with $61 million of assets bridged to Ethereum and $162 million frozen by Sui validators. Cetus announced it can fully reimburse affected users if Sui token holders approve unlocking the frozen tokens in an upcoming on-chain vote. T...
Sui-based protocol Cetus suffered a $223 million exploit on May 22, resulting in $61 million of assets bridged to Ethereum and $162 million frozen by Sui validators. To fully reimburse affected users, Cetus is seeking approval from the Sui community via an upcoming on-chain vote to unlock the frozen tokens.
The protocol announced on May 27 that its reserves, combined with a secured loan from the Sui Foundation, are sufficient to cover the stolen assets. The loan, described by the Sui Foundation as an extraordinary measure, applies only to the $61 million bridged outside of the Sui network, while the remaining $162 million remains frozen pending community approval.
Cetus paused all contracts immediately following the exploit and reached out to the attacker with a $6 million bounty offer through on-chain messages, though no response was received. The protocol emphasized its commitment to reimbursing users and rebuilding trust, promising a step-by-step repayment plan regardless of the vote’s outcome.
The Sui Foundation confirmed the forthcoming community vote proposal and indicated that validators stand ready to release the frozen tokens upon approval. Despite the breach being one of the largest in crypto history, Cetus has not yet provided a timeline for implementing code fixes or resuming trading.
This incident underscores the growing need for robust security measures in decentralized exchanges and highlights the role of community governance in crisis resolution within blockchain ecosystems.