On May 22, 2025, Cetus Protocol, the leading decentralized exchange (DEX) on the Sui blockchain, experienced a significant breach, resulting in one of the largest DeFi breaches in cryptocurrency history. The attacker exploited a pricing flaw, stealing around $260 million in digital assets. This incident caused a 15% drop in the Sui token price by May 29. Despite rapid growth, Cetus DEX became a prime target due to a previously undetected code error. The hack exposed challenges in ensuring security in expanding DeFi ecosystems. The attack involved price manipulation, fake token injections, and crosschain laundering. Despite audits, the flaw went unnoticed, prompting the need for ongoing monitoring and layered security practices. The community initiated a recovery plan, transferring frozen assets to reimburse affected users. The incident underscores the need for improved security measures in decentralized platforms to protect user funds and maintain trust. Read more AI-generated news on: https://app.chaingpt.org/news