#sui/usdt latest news

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Sui Foundation Stays Neutral as $162M Hack Recovery Proposal Heads to Vote

The Sui Foundation, the team behind the Sui Layer 1 blockchain, has chosen to remain neutral on a controversial governance vote regarding the recovery of over $162 million in digital assets linked to a major exploit. The decision comes as the community weighs a proposal that would allow the return of hacked funds — a move with wide-reaching implications for network governance and precedent-setting.

The funds in question are reportedly connected to an exploit of a prominent DeFi protocol built on Sui. The incident raised serious concerns over smart contract vulnerabilities and the broader security practices across the ecosystem. While law enforcement and forensic blockchain teams have traced and frozen the assets, their ultimate fate now rests in the hands of token holders.

The proposal, which is currently being voted on via on-chain governance, suggests redistributing the funds back to impacted users. Advocates say this move would restore user trust and demonstrate the resilience of the Sui network. Critics argue it could undermine decentralization principles and create a risky precedent for intervention.

The Sui Foundation’s neutral stance underscores its commitment to decentralization, stating that "ultimate authority must rest with the community." The foundation has also reaffirmed that it will not use its token treasury to influence the outcome.

As the vote continues, the situation serves as a crucial test for Sui’s young governance framework, highlighting the balance between ethical responsibility and decentralized decision-making in the evolving Web3 landscape.

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