Cetus Protocol, the largest decentralized exchange (DEX) on the Sui blockchain, has secured a loan from the Sui Foundation to compensate users in full following a $223 million exploit last week.
These funds apply only to cover the bridged assets, and are separate from the frozen funds subject to an onchain community vote.
“Using our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain if the locked funds are recovered through the upcoming community vote,” Cetus said in an X post.
“This includes a critical loan from the Sui Foundation, making a 100% recovery for all affected users possible.”
📖 Related Reading
- 📰 Polygon NFTs hit $2B sales milestone as network defies downturn
- 📰 Classover Taps $500M Convertible Note Deal to Boost Solana Treasury Strategy
The recovery plan hinges partly on the outcome of a pending on-chain governance proposal, which would authorize the use of frozen funds to complete user reimbursements.
“These are extraordinary measures taken to protect the Sui community,” the Sui Foundation said in a statement, adding that a “full recovery is possible” with the community’s support.
The exploit of Cetus last week involved an attacker manipulating spoof tokens, such as BULLA, to exploit flawed price curves and reserve logic, allowing them to drain SUI, USDC, and other real assets from liquidity pools without depositing equivalent value.
📖 Related Reading
- 📰 Here’s what happened in crypto today
- 📰 $302 Million Lost to Crypto Scams, Hacks, and Exploits in May: CertiK
At the time, over $162 million in stolen tokens were frozen on-chain, while the remainder were bridged out through multiple paths. The attacker’s wallet (which is still active) was last seen holding over 12.9 million SUI, with additional assets likely swapped or obfuscated across networks.
In response, Cetus paused its smart contracts and initiated an investigation, while its governance token, CETUS, dropped nearly 40% at the time. Trading activity across Sui’s DeFi ecosystem slowed amid liquidity concerns and broader scrutiny of protocol safety.
📖 Related Reading
- 📰 Here’s what happened in crypto today
- 📰 $302 Million Lost to Crypto Scams, Hacks, and Exploits in May: CertiK
Now, with the new secured loan from the Sui Foundation, Cetus says it is in a position to begin reimbursing users immediately.
🔗 You Might Also Be Interested In
📖 Related Reading
- 📰 Here’s what happened in crypto today
- 📰 $302 Million Lost to Crypto Scams, Hacks, and Exploits in May: CertiK
Polygon NFTs hit $2B sales milestone as network defies downturn
Classover Taps $500M Convertible Note Deal to Boost Solana Treasury Strategy
CFTC’s Goldsmith Romero says commissioner exodus ‘not a great situation’
💡 Stay updated with the latest cryptocurrency news and insights by following our website! 🔔 Bookmark this site to get first-hand blockchain and digital currency news!
🔗 You Might Also Be Interested In
Here’s what happened in crypto today
$302 Million Lost to Crypto Scams, Hacks, and Exploits in May: CertiK
Ripple’s Stablecoin, RLUSD, Gets Stamp of Approval in Dubai
💡 Stay updated with the latest cryptocurrency news and insights by following our website! 🔔 Bookmark this site to get first-hand blockchain and digital currency news!
🔗 You Might Also Be Interested In
Here’s what happened in crypto today
$302 Million Lost to Crypto Scams, Hacks, and Exploits in May: CertiK
Ripple’s Stablecoin, RLUSD, Gets Stamp of Approval in Dubai
💡 Stay updated with the latest cryptocurrency news and insights by following our website! 🔔 Bookmark this site to get first-hand blockchain and digital currency news!
🔗 You Might Also Be Interested In
Here’s what happened in crypto today
$302 Million Lost to Crypto Scams, Hacks, and Exploits in May: CertiK
Ripple’s Stablecoin, RLUSD, Gets Stamp of Approval in Dubai
💡 Stay updated with the latest cryptocurrency news and insights by following our website! 🔔 Bookmark this site to get first-hand blockchain and digital currency news!