Sui-based decentralized exchange (DEX) Cetus Protocol has temporarily suspended its smart contract functionality as a precautionary measure. The team is currently conducting an internal investigation and has stated that a more detailed update will follow.
Alert Announcement
There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.
— Cetus
(@CetusProtocol) May 22, 2025
According to blockchain analytics provider Lookonchain, the attacker managed to take control of all liquidity pools denominated in SUI, exploiting assets exceeding $260 million. It has been reported that the attacker has begun moving the compromised funds.
Blockchain security firm SlowMist noted that a portion of the stolen assets has already been exchanged for USDC and bridged to the Ethereum network. The attacker has reportedly used 58.3 million USDC to acquire approximately 21,938 ETH, at an average price of $2,658.
Update:
The Cetus hacker has spent 58.3M $USDC to buy 21,938 $ETH at an average price of $2,658.https://t.co/0BpKSaygmr pic.twitter.com/Tn9n9bhmu6
— Lookonchain (@lookonchain) May 22, 2025
Following a suspected exploit of Cetus Protocol, several tokens native to the Sui ecosystem experienced price declines on DEXs. According to data from DEX Screener, tokens such as LOFI and HIPPO saw losses exceeding 50% within an hour, with some assets falling by more than 90%.
While prices of Sui-related tokens on centralized exchanges (CEXs) have remained comparatively stable, market data from CoinGecko suggests that the impact of the liquidity loss is beginning to extend to broader price movements. The CETUS token itself has dropped approximately 50% on decentralized platforms and around 30% across the market during the same period.
Furthermore, in response to the incident, decentralized finance (DeFi) protocols operating on the Sui blockchain Scallop and Suilend have paused borrowing functions.
Cetus Protocol Surpasses $57B In Trading Volume In May
Cetus Protocol functions on both the Sui and Aptos blockchains, with a focus on improving transaction efficiency and liquidity access within the decentralized finance ecosystem. By implementing a Concentrated Liquidity Market Maker (CLMM) framework—comparable to the model used by Uniswap V3—the platform permits liquidity providers to supply capital within defined price intervals. This method is intended to enhance capital utilization and support more targeted trading approaches.
As of May 2025, Cetus has recorded a cumulative trading volume exceeding $57 billion and has facilitated over 144 million transactions, establishing a strong presence in the Sui-based DeFi landscape
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