The
$SUI blockchain is reeling after a major security incident involving Cetus Protocol, one of its largest decentralized exchanges and liquidity providers. The breach has triggered massive token losses and raised concerns across the broader DeFi community.
Early reports from on-chain analytics firm Lookonchain revealed that over $260 million was drained from Cetus liquidity pools. A majority of the stolen assets were swiftly converted to USDC and bridged to Ethereum, sparking fears of a well-coordinated exploit.
Tokens tied to the Sui ecosystem, including CETUS, LOFI, and HIPPO, experienced sharp crashes, with values plunging by over 50% in just an hour on decentralized exchanges. CETUS, the protocol's native token, dropped from $0.25 to $0.17, deepening investor panic.
$CETUS Protocol issued an urgent statement on X (formerly Twitter):
“A problem was detected in our protocol. We have temporarily stopped our smart contract for security purposes. We are investigating as a team; a detailed statement will be made soon.”
In response to the unfolding crisis, Binance CEO Richard Teng addressed the situation directly, assuring users:
“We are aware of the concerns regarding SUI. Our team is doing everything they can to support the ecosystem and provide the necessary assistance.”
While
$SUI remained stable on centralized exchanges like Binance, the exploit has delivered a significant blow to DeFi trust on Sui, a relatively new Layer 1 network that has been gaining traction in recent months.
As the Cetus team continues their investigation, users await a comprehensive breakdown of what went wrong — and whether more security flaws remain in the Sui DeFi stack.
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