Malicious actors exploited Cetus Protocol, swindling a staggering $223 million, causing widespread chaos in the SUI digital economy.
In a shocking turn of events, the Cetus Protocol, a decentralized exchange on the SUI blockchain, was hacked on May 22, 2025. The attack, which has been labelled as a 'bug' by the platform, resulted in losses exceeding $223 million.
The hack was conducted by an unidentified attacker who exploited an arithmetic overflow vulnerability in a third-party math library. As a result, a significant portion of the stolen funds were frozen or bridged out as part of recovery efforts. By the evening of the same day, $162 million of the stolen funds were frozen.
The incident sent shockwaves through the SUI ecosystem, causing token prices to plummet. The CETUS token saw a sharp decline, dropping 40% in value as trading halted on the platform. The DEX market within the SUI ecosystem was severely disrupted, with many assets losing more than half their value in 24 hours. The SUI/USDC liquidity pool was nearly emptied, causing token prices on the DEX to drop by over 75%.
The team at Cetus worked alongside the Sui Foundation, Sui validators, and other DeFi protocols to mitigate the damage. As of May 23, 2025, $160 million of the stolen funds have been recovered by Cetus and the Sui Foundation. SUI co-founder and CPO confirmed that efforts are ongoing to recover the remaining $60 million.
Binance CEO Changpeng Zhao (CZ) voiced support for addressing the Cetus Protocol hack, calling for stricter security measures across protocols in the DeFi landscape. The incident has drawn attention to the need for such measures, with experts emphasizing the importance of rigorous smart contract audits, especially for platforms handling significant liquidity.
Blockchain analysts are tracking the hacker's movements to identify potential recovery opportunities. Affected users are promised refunds to help restore trust. The broader DeFi landscape is under scrutiny, with the focus on ensuring the security and integrity of decentralized finance platforms.
The scale of the Cetus Protocol exploit underscores the need for vigilance and robust security measures in the DeFi space. The hack led to a dramatic increase in transaction volume, with Cetus processing $2.9 billion in transactions on May 22. Despite the challenges, the community remains resilient, working together to navigate this unexpected event and strengthen the SUI ecosystem for the future.
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