Sui Supports Cetus in Returning Frozen Funds
- Sui validators froze $160 million in stolen assets after a breach.
- Sui backs proposal to return assets.
- Restoration set to bolster user confidence.
Cetus Protocol to recover $160 million in assets on May 22, 2025, with Sui Foundation’s support.
The event highlights protocol resilience, potentially stabilizing market confidence and SUI token value.
Sui Freezes $160 Million After Cetus Breach
The Cetus Protocol, a major decentralized exchange, suffered a security breach resulting in $220 million compromised. Sui Foundation and validators swiftly froze $160 million, preventing further misuse.
Sui validators coordinated with Cetus to initiate a community proposal for returning funds. Sui’s official channels confirmed support, emphasizing enhanced community security efforts.
160 million in frozen funds will be returned to Cetus Protocol, a major DeFi platform on the Sui network. – Sui Co-founder, Sui Foundation.
Asset Return Expected to Boost SUI Liquidity
The incident’s resolution is expected to stabilize the SUI token’s liquidity.
Stakeholders anticipate increased user confidence in decentralized protocols post recovery. The recovery process may influence the DeFi market by showcasing successful incident management. Cetus’ reputation is poised for improvement following these decisive steps.
Sui’s Response Sets Benchmark for DeFi Security
DeFi security events similar to Ronin and Harmony demonstrate limited such quilt-like responses. Sui’s prompt action sets a benchmark for future blockchain interventions.
The successful fund return might inspire protocol refinements, establishing community-driven governance as a standard in decentralized security frameworks moving forward.
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