A recent security incident involving Cetus Protocol, a leading decentralized exchange (DEX) and liquidity provider on the Sui network, has sparked sharp market volatility and significant token declines. Several assets linked to the platform, including $LOFI, $HIPPO, and $CETUS , experienced losses exceeding 50% on decentralized exchanges within a single hour.
The disruption stems from an alleged security vulnerability identified within the Cetus Protocol. In response, the Cetus development team issued a public statement via X (formerly Twitter), confirming the detection of an issue and the temporary suspension of smart contract activity for security purposes. The team assured users that a thorough investigation is underway, with a detailed report to follow.
According to on-chain analytics provider Lookonchain, over $260 million in digital assets were swiftly withdrawn from Cetus liquidity pools. A significant portion of these funds was reportedly converted into USDC and subsequently bridged to the Ethereum network.
The market response was immediate and severe: the CETUS token plummeted from $0.25 to $0.17, reflecting shaken investor confidence and a liquidity crunch across the affected ecosystem.
In a statement addressing the broader implications for the Sui network, Binance CEO Richard Teng acknowledged the situation, stating via X:
> “We are aware of the concerns regarding SUI. Our team is doing everything they can to support the ecosystem and provide the necessary assistance.”
Binance’s involvement highlights the incident’s significance within the broader crypto landscape, as the Sui ecosystem continues to navigate the fallout and seek resolution.
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