Cetus Protocol, the leading DEX on the blockchain $SUI , was hacked on May 22, 2025, with an estimated loss of 260 million USD. The hacker took control of liquidity pools, causing the prices of many tokens on the Sui network to collapse. Although 162 million USD has been frozen, this incident raises concerns about DeFi safety. The article summarizes the details of the event, its impact on the Sui network, and lessons for investors in the USA and Japan.
The Cetus Protocol Hack
On the evening of May 22, 2025, #CetusProtocol - a DEX on the Sui and Aptos blockchain - was attacked, causing liquidity pools to be drained. The hacker exploited a pricing vulnerability, withdrawing 11 million USD worth of SUI tokens from the SUI/USDC pool, causing liquidity collapse. The total estimated loss is 260 million USD, with the hacker holding 12.989 million SUI (54 million USD) and transferring 60 million USDC to Ethereum for money laundering.
Cetus has temporarily suspended the smart contract to prevent further damage. According to the announcement, 162 million USD in assets have been frozen by Sui validators, hoping for recovery. The Sui Foundation is working with validators to block transactions from the hacker's wallet, and Binance is committed to providing support for recovery.
Impact on the Sui network
The hack shocked the Sui ecosystem, which is developing in the USA and Japan. The price of token $CETUS dropped 16%, from 0.24 USD to 0.176 USD (according to CoinMarketCap, May 22, 2025). Tokens like WAL, DEEP, NAVX fell by 5–15%, while memecoins like LBTC lost more than 75% of their value. The price of SUI dropped by 15%, trading at 3.81 USD (according to CoinGecko, May 22, 2025). Two other DEXs, Bluefin and Momentum, temporarily halted operations to avoid risks.
Preliminary Cause
According to HackenProof, the hacker may have:
Swapping fake tokens (like BULLA) for SUI, exploiting pricing errors.
Manipulating pools by adding liquidity close to zero.
Drained real SUI/USDC through accounting discrepancies.
The exact cause (protocol vulnerability or liquidity provider) is still under investigation.
Lessons for investors
The Cetus hack is a warning for DeFi:
Security Check: Ensure the project is audited by a reputable entity such as Movebit.
Diversification: Avoid concentrating capital in one pool. Stablecoins (USDT, $USDC ) help reduce risks.
Follow trusted sources: Use Binance, CoinMarketCap for updates.
Suggestions for investors
Learn about the DEX and CLMM mechanisms of Cetus to assess risks.
Monitor announcements from Cetus and the Sui Foundation.
Use platforms like Binance to ensure transparent data.
Risk Warning
Investing in DeFi and crypto like Cetus Protocol carries high risks due to price volatility and security threats. The information in this article is for reference only and not investment advice. Please conduct thorough research (DYOR) before making a decision.