Sui blockchain's largest decentralized exchange (DEX), Cetus Protocol, has secured a loan from the Sui Foundation to fully reimburse users affected by last week's $223 million exploit.
Compensation and Recovery Plan
- Loan Coverage: Funds will exclusively cover bridged assets, separate from frozen assets pending chain-wide community voting.
- Full Recovery Promise: Cetus announced on X (formerly Twitter) that its cash and token reserves—combined with the Sui Foundation’s loan—enable 100% reimbursement of off-chain stolen assets.
"These are extraordinary measures to protect the Sui community," stated the Sui Foundation, emphasizing that "full recovery is possible with community support."
Exploit Details
The attack involved:
- Fraudulent Token Manipulation: Attackers exploited flawed price curves and reserve logic using fake tokens (e.g., BULLA).
- Asset Drain: SUI, USDC, and other assets were siphoned from liquidity pools without equivalent deposits.
- Frozen Funds: Over $162 million in stolen tokens were frozen on-chain, while remaining assets were bridged out.
The attacker’s active wallet still holds 12.9 million SUI, with additional assets potentially obfuscated across networks.
Immediate Actions Taken
- Contract Suspension: Cetus paused its smart contracts and launched an investigation.
- Market Impact: CETUS governance tokens dropped ~40%, and Sui’s DeFi ecosystem saw slowed trading due to liquidity concerns.
Next Steps
- Governance Vote: A pending proposal may authorize using frozen funds to complete user repayments.
- Repayment Process: Cetus will begin reimbursements immediately with the Sui Foundation’s backing.
FAQs
Q: How will Cetus ensure future security?
A: Enhanced audits and revised price-curve logic are underway, alongside community-driven governance updates.
Q: Can bridged assets be recovered?
A: Only if the governance vote passes, allowing frozen funds to supplement the Sui Foundation’s loan.
Q: What happens to the attacker’s remaining assets?
A: Tracking continues across networks, but recovery depends on cross-chain collaboration.
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