Cetus Protocol restores aggregator after $260M hack on May 22, 2025. (65 characters)
Sui freezes $162M of stolen funds; recovery vote in progress. (59 characters)
SUI token drops 14%, CETUS falls from $0.26 to $0.15 by May 23. (62 characters)
Cetus offers $5M bounty to identify hacker, legal action underway. (64 characters)
On-chain vote and legal steps aim to recover funds on Sui and ETH. (65 characters)
#CetusProtocol #Sui #$260MHack #CryptoSecurity
Cetus Protocol Recovers After $260M Hack Shock
On May 25, 2025, Cetus Protocol, a decentralized exchange on the Sui blockchain, restored its aggregator service following a $260 million hack on May 22, 2025. The attack initially drained $11 million from the SUI/USDC pool, as confirmed by Cetus Protocol.
The hack targeted vulnerabilities in the protocol’s smart contract, which was paused immediately to prevent further losses. Cetus Protocol announced that the stolen funds are divided into two segments: one portion frozen within the Sui ecosystem and the other transferred to Ethereum.
Recovery efforts are underway with a two-pronged approach. The Sui community is organizing an on-chain vote to approve a protocol upgrade for restoring the frozen funds. Simultaneously, legal actions are being pursued against the hacker to recover the remaining assets or reach a whitehat agreement.
The incident triggered a significant market reaction. SUI token value dropped 14% from $4.19 to $3.62 by May 23, 2025. CETUS token also fell sharply from $0.26 to $0.15 during the same period, reflecting investor concerns over the breach.
Sui managed to freeze $162 million of the stolen assets shortly after the hack. Cetus Protocol has offered a $5 million bounty for information leading to the hacker’s identification, aiming to expedite the recovery process.
Funds Recovery Process Underway
Cetus Protocol has outlined clear steps to address the stolen funds. The portion within the Sui ecosystem remains frozen due to swift action by validators. The assets bridged to Ethereum are more complex to recover, requiring coordinated legal efforts.
The on-chain vote by the Sui community is a critical step. It will authorize a protocol upgrade to facilitate the return of frozen funds to affected users. Cetus stated, “We aim for a successful community vote to enable the restoration of assets held within Sui.”
Legal measures are also in progress to tackle the Ethereum-bridged funds. Cetus is working to either negotiate with the hacker for a whitehat resolution or pursue formal legal action to reclaim the assets.
The $5 million bounty has been publicized to encourage ethical hackers or informants to assist in identifying the attacker. This move aligns with industry practices to mitigate damages from cyber theft, as seen in similar cases reported by blockchain security firms like CertiK.
Market Impact and Future Security Measures
The hack’s financial repercussions were immediate. The 14% drop in SUI’s value reflects market uncertainty following the breach. CETUS token’s decline from $0.26 to $0.15 highlights the broader impact on the protocol’s ecosystem.
Cetus Protocol is now focusing on strengthening its security framework. The restoration of the aggregator service marks a step toward normalcy, but the incident has raised questions about vulnerabilities in decentralized exchanges.
The Sui blockchain has also taken measures to prevent future attacks. Freezing $162 million of the stolen funds demonstrates the ecosystem’s ability to respond quickly to threats, a practice that has been effective in past incidents, according to blockchain research by Chainalysis.
Cetus Protocol emphasized its commitment to transparency. “We are addressing community concerns by providing clear updates and outlining our recovery roadmap,” the team stated in a recent announcement.
The incident underscores the risks in decentralized finance. As the sector grows, ensuring robust security protocols remains a priority for platforms like Cetus to maintain user trust and market stability.
