Cetus Protocol has put out a call, the $SUI community will decide.
On May 22, there was an attack on $CETUS Protocol that resulted in the seizure of approximately $223M in funds...
Approximately $162M of these funds were frozen by @Sui validators on individual initiative before being transferred off-chain. This was done through transaction filtering, whereby the validators ignore transactions from certain addresses via their configuration files.
The Sui Network has stated that this authorization is not unique to Sui, and that validators on other networks may similarly perform such filtering for their own risk tolerance or regulatory compliance reasons.
The freeze is not a permanent solution, but is in place in emergencies to slow down the attack and provide a basis for negotiation.
In the aftermath of the attack, #Cetus issued a call for the community to vote on an on-chain protocol update to enable the return of frozen funds. The vote is planned to be held by validators and SUI staking community members.
#Sui announced that it supports this voting process and will only facilitate the process technically. However, he reiterated that his support is subject to two conditions:
1- The vote will be conducted impartially and Sui will not vote.
2- Cetus will publicly commits to fully compensate users using all its financial resources.
This is an important example of how on-chain governance mechanisms work in extraordinary situations and how decentralized networks can respond to crises.