The largest liquidity provider (LP) on the SUI network was hacked.
$200 million in total has been withdrawn from the ecosystem.
Here’s what’s happening in detail 🧵
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This morning, the Cetus protocol, the main liquidity provider on the Sui network, was hacked.
More than $200 million in liquidity has been drained.
The hacker fully seized the pools built on the SUI currency and began draining them continuously without stopping.
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The Cetus team says what happened is not a hack.
According to their first statement on Discord, they discovered a vulnerability in the oracle service.
The statement said:
"Please remain calm. The team is working to resolve the issue."
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Initial reports indicate that more than $200 million in liquidity may have disappeared.
The hacker is transferring USDC off the network in batches estimated at around $1 million per batch.
Only the SUI/USDC pool lost $11 million.
Tokens pegged to the SUI currency are collapsing — most have fallen between 70% to 90%.
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It now seems that the hacker is trying to convert the stolen funds to ETH.
Then laundered it through Tornado Cash to cover the transaction traces.
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As we wait for more updates on what is happening,
It is important to clarify that this is not a hack of the Sui network itself.
The issue is limited to the Cetus protocol only.
The team is currently working with Mysten Labs to fix the issue and will release more details soon.
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The official message from members of the Sui network team is clear:
Stay calm and avoid spreading panic or misleading information (FUD) without reason.
This series will be updated continuously as more details about what happened are revealed.
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