The Sui Foundation is providing a secured loan to Cetus to assist in compensating users affected by a recent exploit. This loan is part of a broader recovery strategy following a $223 million hack that occurred on May 22, 2025, due to a vulnerability in Cetus's centralized liquidity market maker (CLMM) smart contract.
The secured loan from the Sui Foundation is specifically intended to cover the $61 million in assets that were bridged out of the Sui network to Ethereum. These funds are considered unrecoverable through on-chain methods. The remaining $162 million, which remains frozen on the Sui network, is subject to an upcoming community vote to determine whether these assets should be unlocked and returned to users.
Cetus has committed to initiating the compensation process immediately after the vote, regardless of its outcome. The protocol plans to utilize its own treasury reserves, including cash and token holdings, alongside the Sui Foundation's loan to facilitate full reimbursement.
The Sui Foundation has described this loan as an "extraordinary measure" aimed at protecting the ecosystem and restoring user trust. The loan proceeds are currently held in escrow and will be deployed promptly following the conclusion of the community vote.
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