Cetus Secures $160M After DeFi Hack Recovery Efforts
- Cetus secures $160M after a significant DeFi hack.
- Whitehat bounty offered for fund return.
- Debate on governance and decentralization in Sui community.
Cetus Protocol secures $160M in stolen funds following a DeFi exploit involving SUI and ETH, coordinating with the Sui Foundation as of May 31, 2025.
The incident impacts the DeFi market, intensifying discussions on governance and decentralization amid recovery measures and compensation plans.
Cetus Recovers $160M from DeFi Hack
The Cetus Protocol experienced a significant exploit where over $220M in assets were hijacked. Efforts to recover $160M have been made, with active roles taken by the Sui Foundation and Mysten Labs.
Adeniyi Abiodun of Mysten Labs clarified that the issue stemmed from Cetus’ smart contract logic, not the Sui consensus or Move. “It’s not a bug in Sui consensus, it’s not a bug in Move,” isolating the issue to Cetus’ application logic. A $6M whitehat bounty has been offered to the hacker for fund return.
Sui’s Largest DeFi Hack Disrupts Liquidity
The immediate effect saw disrupted liquidity in Sui DeFi markets, with users grappling with frozen or drained pools. This incident is Sui’s largest DeFi hack to date.
Financially, Cetus and the Sui Foundation provided a secured loan to cover potential losses. The event spurred debate on the extent of foundation and validator actions in such crises.
Past DeFi Hacks Influence Current Recovery Tactics
Similar events, such as those with Poly Network and Euler Finance, have relied on community coordination and fund freezes. Each case highlighted governance challenges and decentralization concerns.
Looking forward, the industry might adopt more robust security measures and governance structures, aiming for greater transparency and user protection based on lessons from historical trends.
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