Cetus Protocol Moves Forward with Recovery After Hack

Key Takeaways:

• Cetus Protocol, a major trading platform on the Sui blockchain, is recovering after a big hack on May 22, 2025, where over $220 million was stolen.
• A large part of the stolen money, about $162 million, was quickly frozen by people running the Sui network.
• The Sui community voted (90.9% yes) to move these frozen funds to a safe multi-signature wallet.
• This special wallet is managed together by Cetus Protocol, the Sui Foundation, and the security company OtterSec for safety.
• Cetus Protocol has a full plan to get back on track, using its own money, a loan from the Sui Foundation, and a promise to pay back all affected users.
• The platform hopes to be fully recovered and running again about one week after the community vote.

A Major Hack Hits Cetus Protocol

Cetus Protocol, an important decentralized exchange (DEX) on the Sui blockchain, suffered a serious security problem. Attackers managed to take over $220 million in different types of digital money. This event worried many users and the wider digital currency community. The hackers found a weakness in the platform’s smart contracts, which are like digital agreements that control how trading pools work. They tricked the system into letting them take out large amounts of money after putting in only a little. The stolen funds included SUI tokens, stablecoins like USDC, and other tokens, some of which lost value quickly as they were drained.

Quick Action Freezes Stolen Funds

Despite how bad the attack was, there was some good news. People who help run the Sui network, called validators, acted fast. They managed to freeze about $162 million of the stolen digital money soon after the hack was discovered. This quick response was very important because it stopped those funds from being lost forever.

Community Votes to Help Recovery

After the funds were frozen, the Sui community had to decide what to do next. A proposal was made to move the recovered money to a safe place. On May 29, 2025, the community voted strongly in favor of this plan, with 90.9% agreeing. This showed that many people wanted to help fix the problem and support those who lost money.

A Secure Wallet for Recovered Money

A key part of the recovery is a new multi-signature (multisig) trust wallet. The $162 million in frozen funds were moved here. “Multi-signature” means that several people or groups need to agree before any money can be moved from this wallet. In this case, Cetus Protocol, the Sui Foundation (which supports the Sui blockchain), and OtterSec (a company that checks blockchain security) all have keys. This setup makes sure the money is handled safely and openly. The transfer to this secure wallet was completed around May 31, 2025.

Cetus Protocol’s Full Recovery Plan

Cetus Protocol has shared its plan to fully recover and pay back users. It’s not just relying on the frozen funds. The platform will also use its own money from its treasury. Additionally, the Sui Foundation has agreed to give Cetus an emergency loan. This financial help is a big step towards making sure all users get their lost funds back, even if their specific assets weren’t part of the $162 million that was frozen.

Steps to Get Back to Normal

The path to full recovery for Cetus involves several important steps. First, Sui network validators will help make sure the recovered funds can be distributed from the multisig wallet according to Cetus’s plan. At the same time, Cetus is working to fix the weak spots in its smart contracts and make the whole platform more secure. They are also working to bring back liquidity (enough funds for trading) and get all their services running again. Cetus hopes to do all of this and restart its platform about one week after the community vote. They are also creating a special system to handle compensation for users, which will be checked for safety before it’s used.

Working with the Community

Throughout this difficult time, Cetus Protocol has tried to keep its users informed about how the recovery is going. The team said sorry for the incident and its effects. They also asked the Sui community to work together to rebuild trust. A community meeting is planned to share more details about the hack and the recovery efforts. The teamwork between Cetus, the Sui Foundation, Sui validators, and security experts like OtterSec shows a strong effort to deal with such crises in the world of digital money.

More News: $260M Drained: Cetus Protocol Exploit Sparks Panic Across Sui Network Ecosystem

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