Sui Foundation issues loan to Cetus for user compensation following $223M
In a statement posted on X on May 27, the foundation said the loan will cover funds that the hacker managed to bridge out of the $SUI
Cetus will combine the loan with its treasury assets to reimburse affected users in full, provided the community approves a separate on-chain vote to unlock the frozen funds.
Cetus echoed this sentiment in another statement, apologizing for the incident and asking the Sui community to support the recovery vote. “We are now in a position to fully cover the stolen assets currently off-chain,” the team said, “if the locked funds are recovered through the upcoming community vote.
Cetus suffered a complex exploit targeting a flaw in its concentrated liquidity market maker contracts. The attacker exploited unchecked math operations in a third-party code library and manipulated prices using a flash swap. As a result, they were able to drain several pools by faking liquidity deposits and repeatedly withdrawing real tokens.$BNB
