- Cetus Protocol suffers a $223 million hack affecting DeFi security on Sui blockchain.
- Fund recovery efforts focus on legal means and community cooperation.
- Cetus token CETUS drops 18%, market reactions critical.
Cetus Protocol suffered a $223 million hack on May 22, 2025. This incident prompted immediate recovery actions involving community and legal measures. The hack affects DeFi protocol security on Sui blockchain and severely impacts user confidence and market stability.
Cetus Loses $223M in Sui Blockchain Security Breach
Cetus Protocol experienced a major security breach
leading to an estimated $223 million in stolen user funds. The Cetus team has responded rapidly, pausing smart contracts to limit further losses and collaborating with the Sui community to recover funds.
Progress on recovery includes negotiations and legal channels aimed at recovering stolen assets. Cetus proposes unlocking frozen assets through Proof of Stake voting. The unaffected aggregator service resumes online, ensuring liquidity pool reliance is minimized.
Market reactions have been significant, with the native token CETUS declining 18%. The incident led to suspensions and audits among related DeFi protocols. Deddy Lavid of Cyvers highlighted vulnerabilities in Cetus’ smart contracts exploited during the attack.
“The attacker exploited vulnerabilities in Cetus Protocol’s smart contracts by deploying spoof tokens to manipulate price curves and reserve calculations” – Deddy Lavid, CEO, Cyvers.
Legal and Community Efforts Drive $223M Fund Recovery
Did you know? In the wake of the $223 million hack, Cetus Protocol faces a market setback. This event ranks among the largest DeFi breaches, comparable to previous multimillion-dollar exploits in the crypto space, amplifying concerns about security resilience.
The Sui coin currently trades at $3.46, holding a market cap of $11.54 billion according to CoinMarketCap. With the circulating supply at 3.34 billion, the Sui token has declined 4.82% in the past 24 hours amidst a 42.82% decrease in trading volume. Over a 90-day span, the price shows a positive change of 14.98%.
Coincu analysts suggest that given recent events, regulatory scrutiny may intensify across DeFi platforms. Technological advancements to bolster smart contract security are imperative. Data underscores the need for robust security measures as decentralized finance grows.
No tags available.
Other Posts
Latest
Cantor Fitzgerald Launches Gold-Hedged Bitcoin Fund for Traditional Investors
SEC Clarifies PoS Staking Activities Exempt from Securities Law
Press Release
Dogecoin (DOGE) enthusiasts flock to Blockchain Cloud Mining to earn stable income every day
Bet20 Launches Premium Casino Platform with Trusted Licensing, Instant Crypto Withdrawals, and Elite Gaming
