the Sui Network has recently experienced a significant security breach involving its largest decentralized exchange (DEX), Cetus Protocol.Cointelegraph+14CoinGape+14Decrypt+14
On May 22, 2025, Cetus Protocol suffered a major exploit resulting in the theft of approximately $223 million worth of digital assets. The attacker exploited vulnerabilities in Cetus' smart contracts, manipulating price calculations using spoofed tokens to drain liquidity pools. Crypto Briefing+4CoinDesk+4CryptoSlate+4Crypto Briefing+4Decrypt+4CoinDesk+4
🛡️ Response and Recovery Efforts
In response to the breach, Cetus Protocol promptly paused its smart contracts to prevent further losses. Collaborating with the Sui Foundation and network validators, the team managed to freeze $162 million of the stolen funds. Efforts are ongoing to recover the remaining assets and enhance security measures. FXStreet+2CryptoSlate+2CoinDesk+2Binance+4Cointelegraph+4Reddit+4
📉 Impact on the Market
The exploit led to a significant downturn in the Sui ecosystem:Binance+10Decrypt+10CryptoSlate+10
The native token, CETUS, plummeted by over 40%.
Several Sui-based tokens experienced losses ranging from 76% to 97%.
The total value locked (TVL) in Cetus Protocol dropped sharply, reflecting diminished investor confidence. Binance+14CryptoSlate+14CoinDesk+14CryptoSlate+2Decrypt+2DL News+2
🔒 Moving Forward
The Cetus team is conducting a thorough investigation to identify the root cause of the exploit and implement robust security enhancements. The incident underscores the importance of rigorous smart contract auditing and proactive risk management in decentralized finance platforms.Binance+5Cointelegraph+5CryptoSlate+5DL News+2CryptoSlate+2CoinDesk+2
For users and stakeholders, it's advisable to stay informed through official channels and exercise caution when interacting with affected platforms.
