In May, the Sui ecosystem faced one of its most serious security threats to date. The decentralized exchange Cetus Protocol suffered a devastating cyberattack, resulting in total damages of over $260 million. Sui Network has now published a detailed post-mortem, revealing that the breach was not caused by a vulnerability in the Sui blockchain or the Move programming language, but rather by a flaw in a third-party math library used by Cetus.


📉 $162 Million Frozen, but Losses Remain

Thanks to a swift response, the network managed to freeze $162 million, while Cetus offered the attacker a $6 million bounty for the return of the remaining stolen funds. Part of the stolen assets — $63 million — were later transferred to the Ethereum network. According to security platform Extractor Web3, the hackers used a wallet ending in “AF16” to launder over 20,000 ETH, worth approximately $53 million.


🔐 Validators Freeze Wallets — Raising Decentralization Concerns

Some community members raised concerns after it was revealed that validators were able to freeze wallet addresses unilaterally. Critics argue this calls into question the true decentralization of the Sui network. One user noted that if 114 validators can freeze wallets at will, it poses a serious threat to transaction freedom and censorship resistance.


💡 Sui Commits $10 Million to Security Improvements

In response to the attack, Sui announced a $10 million investment in network security, to be spent on independent audits, bug bounty programs, and formal code verification. A key part of the initiative will be working closely with the developer community to prevent similar incidents in the future.


📢 Sui Team: Every Major Blockchain Faces Challenges — It’s About Learning and Growing

Sui representatives stated that such incidents are part of the growing pains of any major blockchain network. No programming language or architecture can completely eliminate human error. The team urged the community to treat the Cetus hack as a wake-up call to strengthen the network's core infrastructure.


📉 SUI Token Drops 3% Following Disclosure

After the CoinMarketCap report was released, the SUI token fell by 3.07%, trading at $3.49.


🌐 Rising Number of Cyberattacks Raises Alarm in Web3 Space

The Cetus attack is just one of several major incidents that have rocked the crypto space in the first half of 2025. Cybersecurity is rapidly becoming a top priority, with many industry leaders calling for greater self-regulation and resilience to avoid heightened scrutiny from regulators.




#sui , #CryptoNewss , #Cetus , #CryptoSecurity , #Web3

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