According to Cointelegraph, the Sui-based decentralized exchange Cetus is on the verge of potentially recovering funds lost in a recent exploit, contingent on the results of a community governance vote set to conclude on June 3. The exchange suffered a significant breach on May 22, resulting in the loss of over $220 million in digital assets. In response, Cetus successfully froze $162 million of the stolen funds shortly after the incident.
In a statement made on May 27, Sui revealed that Cetus had initiated a community vote to authorize the recovery of the frozen assets. If approved, the funds will be retrieved from the attacker and secured in a multisignature trust account until they can be returned to the affected accounts. This vote is a component of a comprehensive recovery strategy that also involves utilizing Cetus' treasury and obtaining an emergency loan from the Sui Foundation.
The swift action by Sui validators to freeze the funds has sparked a debate within the community. Some members have expressed concerns over the centralization risks, while others have commended the quick response as a positive measure for enhancing security. Sui tokenholders have the option to stake their delegated tokens to a validator that aligns with their voting preferences. As of the latest data from the Sui blockchain explorer, 52.9% of validators have voted in favor of the recovery plan, while 46.7% have yet to cast their votes.
In addition to the community vote, Cetus has sought an emergency loan from the Sui Foundation, alongside validator and community backing for the restitution of the stolen funds. The exchange is optimistic about fully covering the stolen assets if the locked funds are successfully recovered through the ongoing vote. Cetus emphasized in a May 27 statement that this includes a crucial loan from the Sui Foundation, which would enable a complete recovery for all affected users.
Regardless of the vote's outcome, Cetus has committed to initiating a recovery process immediately. The protocol intends to release a detailed plan outlining the subsequent steps for users impacted by the exploit. This proactive approach aims to reassure the community and ensure transparency in the recovery efforts.
