Cetus Protocol is the largest decentralized exchange (DEX) on the Sui blockchain, providing capital-efficient trading through concentrated liquidity pools. On May 22, 2025, Cetus was exploited for $260 million in one of the largest DeFi attacks of the year.

The attacker used counterfeit tokens—fake tokens impersonating legitimate assets—to manipulate liquidity pools. By exploiting weaknesses in token verification, the attacker tricked the protocol into swapping real money for fake, draining significant liquidity within minutes.

Immediate Response from Sui Foundation

Sui Network and Sui Foundation quickly responded to the crisis. In collaboration with Inca Digital, they supported a $5 million reward for any information leading to the identification and arrest of the attackers.

"Our priority remains to protect the community and support the resolution of the issue proactively," Sui Network posted on X.

So far, the attacker has not responded, and no arrests have been made. However, the reward remains in effect, and the investigation is ongoing.

Why Did SUI Price Drop Sharply?

After the hack, SUI is currently trading at around $3.68, down approximately 5.5% in the past 24 hours. The decline reflects shaken investor confidence and new fears about the safety of DeFi, although Sui's core infrastructure remains intact.

Key Technical Indicators:

  • SUI is testing psychological support levels at $3.60–$3.50.

  • RSI near 40 indicates moderate bearish momentum with recovery potential.

  • A spike in trading volume indicates both fear-driven sell-offs and strategic accumulation.

SUI Price Prediction: What Will the Next Price Be?

Despite the short-term pain, the long-term fundamental outlook for SUI remains strong:

  • Ongoing ecosystem development and institutional support.

  • Strong DeFi adoption—though currently under review.

  • Immediate transparency and proactive communication from the Sui Foundation.

Bull case: If sentiment stabilizes and solutions emerge, SUI could recover to $4.20–$4.50 in the coming weeks.

Bear case: If there is no progress in fund recovery and community skepticism escalates, SUI could drop to $3.20, with $2.80 being a crucial long-term support level.

Broader Implications for Sui

Although the Sui protocol was not breached, this vulnerability highlights the urgent needs within the ecosystem:

  • Better token listing verification on DEX.

  • Mandatory smart contract audits and fraud detection systems.

  • Tighter risk controls in liquidity management.

The swift reaction of the Sui Foundation, combined with financial support and public transparency, could help turn this crisis into a learning opportunity—paving the way for tighter security and greater trust in the long term.