SUI Ecosystem's Peace Disrupted by Cetus Protocol Hackers, Making Off with $223 Million
In a shocking turn of events, the Cetus Protocol, a decentralized exchange on the SUI blockchain, suffered a significant hack on May 22, 2025. This incident, which has sent ripples through the SUI ecosystem, has resulted in losses exceeding $223 million.
The attack on Cetus has led to a dramatic increase in transaction volume, with the platform processing $2.9 billion in transactions on May 22. However, this surge in activity came at a high cost, as many assets in the SUI DEX market lost more than half their value in 24 hours. The CETUS token saw a sharp decline, dropping 40% in value as trading halted on the platform.
In an effort to mitigate the damage, Cetus has been working closely with the Sui Foundation, Sui validators, and other DeFi protocols. Binance CEO Changpeng Zhao (CZ) has also voiced support, stating "We are doing what we can to help Sui."
Blockchain analysts are tracking the hacker's movements to identify potential recovery opportunities. As of May 23, 2025, $160M has been recovered by Cetus and the Sui Foundation. By the evening of May 22, $162 million of the stolen funds had been frozen. At least $63 million had been bridged to Ethereum as of May 22, and efforts are ongoing to recover the remaining $60 million of the stolen funds.
Affected users are promised a refund, which could help restore trust. The incident has drawn attention to the need for stricter security measures across DeFi protocols. The security patch to fix the hack on Cetus Protocol was developed by Immunefi.
The hack on Cetus underscores the need for rigorous smart contract audits, especially for platforms handling significant liquidity like Cetus. The SUI ecosystem experienced heavy losses following the hack, with the SUI/USDC liquidity pool nearly emptied.
Cetus has not yet resumed trading, and users are advised to remain cautious as the situation develops. The broader DeFi landscape is under scrutiny, with some experts calling for stricter security measures across protocols. This incident serves as a stark reminder of the importance of robust security in the decentralized finance space.
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