Cetus Hack Incident Update: Sui Foundation Supports User Loss Records and Ecological Governance
After the Cetus protocol was attacked by hackers, the Sui Foundation responded quickly, announcing support for comprehensive user loss records and collaborative ecological governance. This incident exposed vulnerabilities in the liquidity parameter design of the Cetus automated market maker.
In response to the crisis, the Sui Foundation and the Cetus team initiated multi-layered governance measures, including freezing on-chain assets, tracking hacker wallets, and launching white hat negotiations. Verification nodes collaborated across chains to freeze $162 million in damaged assets at the blockchain level and developed asset return technology that does not require rollback of transactions, ensuring the immutability of the blockchain.
At the same time, Cetus proposed to authorize protocol upgrades through an on-chain voting mechanism, transferring the authority to unfreeze funds to community governance, highlighting the importance of decentralized decision-making.
Additionally, the Sui Foundation, in collaboration with Inca Digital and global law enforcement agencies, is offering a $5 million reward for hacker leads and promises to cease legal action if the hacker cooperates. The development team is working hard to repair system data, design compensation and fund recovery plans, and is committed to maximizing user loss recovery. This incident marks an important turning point in security governance in the DeFi space, as the Sui Foundation and Cetus drive the ecosystem towards a safer and more transparent direction through technological iteration and community collaboration.
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