On Wednesday, the $SUI validator community acted swiftly to freeze approximately $162 million of the stolen funds in response to the recent security incident affecting the Cetus protocol. Here’s how this process unfolded:
Each $SUI validator maintains a configuration file that allows it to block transactions from specific addresses.
The decision to add or remove addresses from this file rests solely with individual validators and can be reversed at any time.
In this instance, over one-third of validators (by stake) chose to block transactions from two addresses suspected of being linked to the attack, effectively freezing the funds in question.
It’s important to note that this capability is not unique to the Sui network. Any validator, on any blockchain, can choose to filter transactions according to their risk tolerance or regulatory obligations.
This rapid response successfully froze a significant portion of the stolen assets—approximately $162 million—before the attacker could bridge them out to another chain.
Such freezing measures are intended as a temporary, emergency action to slow an attack and create leverage for the victim to engage with the attacker. In this case, while the freeze served its intended purpose, Cetus has not yet received any response from the attacker despite outreach attempts.
Earlier today, Cetus proposed a community vote on a protocol upgrade to return the frozen funds to affected users. This proposal does not involve reversing blockchain history or undoing past transactions. Rather, it represents an extraordinary response to an extraordinary situation—prioritizing the recovery of customer assets.
After careful consideration, we support holding an on-chain community vote on the following conditions:
1. We will abstain from voting and remain neutral on the outcome. Our role is to design and facilitate a transparent process that reflects the collective will of the Sui community. We will share detailed design plans and code for the vote soon.
2. Cetus must make a public commitment to use all of its financial resources to fully restore all lost funds and ensure every customer is made whole.
We will continue to monitor the situation closely and support the community in reaching a fair resolution. Thank you for your continued trust and participation in the Sui ecosystem.
