Cetus Guarantees Full User Compensation Following a $223M Security Breach, Supported by the Sui Foundation

The decentralized exchange Cetus Protocol, operating on the Sui network, has pledged to fully compensate users affected by a $223 million hack on its Concentrated Liquidity Market Maker pools. The promise is contingent on a forthcoming community vote to unfreeze $162 million in assets, along with a crucial loan from the Sui Foundation.

A community vote will decide the unlocking of the frozen wallets and initiation of paybacks, marking a significant test for decentralized crisis response. Despite the breach, which occurred due to a vulnerability in the protocol's pools, Cetus was able to freeze two wallets holding $162 million within an hour.

The protocol has also partnered with law enforcement agencies, the Sui Foundation, and security firm Inca Digital to recover the lost funds after the hacker failed to respond to white-hat negotiations.