- Sui Foundation offers loans to Cetus after $223M exploit tied to smart contract flaw.
- $160M remains frozen on-chain as $60M is laundered across Ethereum.
- Community vote pending on recovery plan as Cetus issues $6M bounty for intel.
The Sui blockchain network is undergoing a coordinated response after a breach in the Cetus Protocol’s smart contract code that led to the loss of approximately $223 million. The hack stemmed from a flaw in a math library used by Cetus, enabling an attacker to manipulate token pair prices and empty several liquidity pools. Impacted assets include CETUS, SUI, and USDC, with some funds already moved off-chain to Ethereum.
In the wake of this breach, the Sui Foundation confirmed it will provide a loan to Cetus Protocol to help fully compensate affected users. This funding is part of a wider recovery framework designed to cover losses the protocol couldn’t absorb on its own. Alongside this secured loan, the Sui Foundation also announced a bridge loan facility to help speed up the repayment process.
These loans will be added to the Cetus treasury to assist in covering the outflow of assets, including those that were bridged out of the Sui network and are only partially recoverable. However, the Foundation clarified it has not committed any funds to address assets currently frozen within the Sui network.
$160M Frozen on Sui, $60M Laundered; Cetus Issues $6M Bounty, Awaits Vote
Sui validators acted quickly after the hack, blacklisting the attacker’s wallets using an emergency consensus mechanism to halt further unauthorized activity. Despite this prompt action, approximately $60 million had already been laundered through token conversions and cross-chain transfers, reportedly to Ethereum.
Related: Sui Responds to Cetus Incident With $10 Million Security Fund, Vows Stronger dApp Support
Roughly $160 million in SUI addresses connected to the hack remains frozen. Cetus Protocol later confirmed the incident on its official X account, noting that its smart contract was paused and that active investigations are underway.
Related: Sui Foundation Denies Insider Trading, SUI Price Falls 1.47%
Following the incident, Cetus Protocol has offered a $6 million bounty for any information that could lead to asset recovery. Meanwhile, the DEX awaits a Sui Network community vote on possible measures to unlock and reassign the $160 million in frozen funds. Cetus has committed to initiating a recovery plan for its affected liquidity providers and token holders, regardless of this vote’s outcome.
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