Sui validators approved the release of $162 million to help Cetus repay users and restart its platform.
The funds will go to a wallet controlled by Cetus OtterSec and the Sui Foundation for safe recovery.
Cetus aims to complete its eight step recovery plan and relaunch the exchange within one week.
Validators representing 91% of the Sui network stake have approved a proposal to release $162 million in frozen funds. The vote followed a major exploit targeting the Cetus decentralized exchange (DEX) last week.
https://twitter.com/_ZoneCrypto_/status/1928636347126001965
The decision enables Cetus to begin reimbursing users and restart operations. The 48-hour referendum closed on May 29 after more than two-thirds of the network voted in favor.
Hack Left $162 Million Stranded on Sui
On May 22, attackers drained $223 million in liquidity from Cetus. They managed to bridge $61 million to Ethereum before validators froze the remaining assets on Sui.
The frozen portion, worth around $162 million, became the subject of the community vote. Cetus had earlier announced it could cover the Ethereum-bridged losses with reserves and a loan. However, it required approval to access the remaining funds on-chain.
Funds Assigned to Tri-Party Wallet
Validators approved a transaction directing the release of funds to a multi-signature wallet. This wallet is jointly controlled by Cetus, security firm OtterSec, and the Sui Foundation.
The foundation stated that the assets will stay in trust until Cetus completes its user repayment plan. This move eliminates uncertainty around recovery efforts and allows the protocol to focus on relaunch steps.
Eight-Step Roadmap Underway
Cetus has started implementing an eight-step recovery plan targeting a relaunch within one week. The first step involves validators executing the protocol upgrade to move funds into the wallet.
An emergency update to the market-making contract has been completed and sent for audit. This upgrade was necessary to support the relaunch process.
System Recovery and User Compensation
Next, Cetus engineers will restore pool data and calculate individual user losses. The recovered tokens will be rebalanced back to their original form.
The attackers performed complex token swaps during the breach. In response, Cetus plans to rebalance pools carefully. The strategy aims to prevent additional slippage or loss in asset value.
Auditor Review and Additional Payments
Cetus developers are building a compensation contract to distribute any unrecovered funds after the audit is complete. This contract ensures that remaining victims receive what they are owed.
The team has promised frequent progress updates throughout the recovery phase. Staff are now focused on meeting the tight schedule to bring the platform back online.
Validators will transfer the funds to the tri-party wallet once the upgrade finalizes. This clears the path for Cetus to reimburse affected users and resume full exchange operations.
