TLDR
- Sui Network launches $10 million security initiative following $223 million Cetus Protocol hack
- Sui Foundation provides secured loan to Cetus enabling full user compensation for stolen funds
- Community vote required to release frozen validator-held assets as part of recovery plan
- Cetus token jumps 16.7% and SUI rises 5.45% after recovery plan announcement
- Hack caused by bug in Cetus’s custom math library, not Sui blockchain itself
Sui Network has announced a $10 million security initiative following the $223 million Cetus Protocol hack. The comprehensive plan includes funding for audits, bug bounties, and enhanced developer tools to strengthen ecosystem security.
Doubling down on Sui security. A thread 🧵
The root cause of the Cetus incident was a bug in a Cetus math library, not a vulnerability in Sui or Move. But the impact on users is the same. We need to take a holistic perspective and step up our game on supporting ecosystem…
— Sui (@SuiNetwork) May 26, 2025
The Sui Foundation has also stepped in with a secured loan to Cetus Protocol. This loan enables full user compensation for the stolen funds from the recent security breach.
The hack occurred when attackers exploited a flaw in Cetus Protocol’s custom math library. Sui Network clarified that the vulnerability was not in the Sui blockchain or Move programming language itself.
Hackers managed to steal $223 million from the decentralized exchange protocol. About $60 million was converted to other assets and withdrawn from the blockchain before validators could stop the transactions.
Validator Response and Frozen Assets
Sui validators quickly responded by freezing transactions from the attacker’s address. This action prevented further unauthorized transfers but sparked debate about blockchain decentralization.
The frozen funds are now subject to a community governance vote. The vote will determine whether these assets can be released as part of the recovery plan.
Cetus has offered a $6 million white-hat bounty for information leading to asset recovery. The Sui Foundation added an additional $5 million reward for information that could identify the attacker.
📢 New Progress Update – A Path Forward Together!
Since the incident, we have reflected deeply on the incident and its impact on our users, partners, and the broader ecosystem. We are deeply sorry and take this responsibility seriously. Today, we want to share a meaningful step…
— Cetus🐳 (@CetusProtocol) May 27, 2025
The recovery plan combines the Sui Foundation loan with Cetus treasury funds. This approach aims to provide 100% compensation to affected users.
Market Response and Price Movement
Following the hack announcement, SUI token price dropped 17.5% from $4.30 to around $3.54. The price has since stabilized in the $3.40-$3.60 range with reduced selling pressure.
After the recovery plan announcement, market sentiment improved. Cetus token (CETUS) surged 16.7% to $0.1518, while SUI recovered 5.45% to trade at $3.67.
On-chain metrics show early signs of ecosystem recovery. Total Value Locked (TVL) has begun climbing again, with bridged TVL showing increased activity.
Cross-chain users appear to be regaining confidence in the network. However, DEX volume and app revenue remain below pre-hack levels.
Cetus acknowledged the coding error and apologized to users and the broader ecosystem. The company has committed to implementing stricter security checks and monitoring systems.
The Sui Foundation emphasized these are extraordinary measures to protect the community. Recovery efforts will begin immediately regardless of the community vote outcome.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
