Hackers exploit Cetus Protocol, causing $223 million of damage within the SUI ecosystem, inciting chaos and distress
The Cetus Protocol, a prominent decentralized exchange on the SUI blockchain, continues to grapple with the aftermath of a major hack that took place on May 22, 2025. A total of approximately $223 million was stolen, with $63 million bridged to Ethereum and an estimated $160 million recovered as of May 23.
The hack sent shockwaves through the SUI ecosystem, causing the SUI/USDC liquidity pool to nearly empty and token prices to plummet by over 75%. Many assets within the SUI DEX market lost more than half their value in 24 hours due to the incident.
Blockchain analysts are working diligently to track the remaining $60 million of the stolen funds, with the hope of identifying potential recovery opportunities. The Sui Foundation, Cetus, and other DeFi protocols are collaborating with the Sui team to investigate and resolve the hack.
The Cetus team, in partnership with the Sui Foundation, Sui validators, and other DeFi protocols, successfully froze $162 million of the stolen funds. This is a significant step towards recovery, but the challenge remains in locating and recovering the remaining $60 million.
The Cetus Protocol's woes have drawn attention to the need for stricter security measures in the DeFi landscape, particularly for platforms handling significant liquidity. The incident underscores the importance of rigorous smart contract audits, especially for platforms like Cetus, which is a cornerstone of the SUI ecosystem.
The attack on Cetus Protocol led to a dramatic increase in transaction volume, with $2.9 billion in transactions processed on May 22. Despite this, the CETUS token dropped 40% in value as trading halted on the platform.
Binance CEO Changpeng Zhao (CZ) has voiced support for the Cetus Protocol, while the search results do not provide information about which company supported the SUI Foundation, Cetus validators, and other DeFi protocols in fixing the Cetus protocol hack.
Affected users are promised a refund, which could help restore trust. The Cetus team, in collaboration with the Sui Foundation, is working tirelessly to recover the remaining funds and bring normalcy back to the platform.
The hack has been labelled as a "bug," but the scale of the exploit underscores the need for a more robust and secure infrastructure in the DeFi space. As the investigation continues, the community awaits updates on the progress towards recovering the remaining stolen funds.
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