Sui-based decentralized exchange (DEX) Cetus announced on May 27 that it can fully reimburse all users affected by its May 22 exploit, a recovery contingent on an upcoming on-chain vote by Sui token holders to unfreeze locked funds.
The protocol, which suffered the ninth-largest crypto hack in history according to Rekt News, stated that a combination of its own cash and token reserves, along with a secured loan from the Sui Foundation, is sufficient to cover the $61 million in assets bridged to Ethereum by the attacker.
The Sui Foundation confirmed the loan, characterizing it as an “extraordinary measure” to ensure user balances are restored beyond what Cetus could manage independently. Crucially, this loan specifically addresses the funds transferred off the Sui network, not the remaining $162 million that Sui validators have already frozen on the blockchain.
An imminent community vote will determine whether these frozen tokens are unlocked. Cetus has urged the Sui community for “full support” to facilitate the complete restoration of user funds. The DEX also committed to publishing a step-by-step repayment plan, regardless of the vote’s outcome.
The Cetus exploit, which occurred on May 22, stemmed from a flaw in the protocol’s pricing logic. On-chain data revealed that the breach resulted in a total of $223 million worth of tokens being affected, with $61 million successfully bridged to Ethereum and the remaining $162 million halted by Sui validators.
Cetus attempted to negotiate with the exploiter through on-chain messages, offering a $6 million bounty for the return of the funds bridged to Ethereum, but received no response.
Project developers have expressed deep regret for the impact of the exploit and stated they would “begin recovery immediately” once the reimbursement distribution mechanics are finalized. Cetus emphasized that rebuilding user trust is its top priority and pledged to provide regular progress updates. However, the protocol has not yet disclosed a timeline for code fixes or the resumption of trading.
