Tag:

223M

Crypto Trends

Sui Decentralized Exchange Cetus Is Back Online After $223M Exploit

by admin



Sui-based decentralized exchange (DEX) Cetus Protocol is back online following a 17-day outage spurred by last month’s $223 million exploit.

The protocol recovered around $162 million worth of stolen funds and is continuing legal action against the attacker, who did not respond to the DEX’s requests to negotiate.

Sui stepped in to compensate Cetus for the initial losses, issuing a loan to reimburse impacted users on May 28. DefiLlama data shows that Cetus’ total value locked (TVL) was $284 million before the exploit and is now down to $124 million.

The attacker exploited a flaw in Cetus’ shared math library contract, tricking the protocol into believing that one token was worth millions of dollars.

Despite attempts to negotiate and come to a settlement, the attacker began laundering funds through coin-mixing service Tornado Cash.

Cetus has refilled the liquidity pools with between 85% to 99% of their initial liquidity, meaning that users can now trade on the platform without exceptional slippage.

The Cetus token (CETUS) has lost 44% of its value over the past month and is down around 1% over the past 24 hours, CoinMarketCap shows.



Source link

0 comments
0 FacebookTwitterPinterestEmail
The full story behind the $260 million breach
NFT Gaming

Cetus Protocol relaunches with new roadmap and compensation plan after $223m exploit

by admin



Sui network-based Cetus Protocol has relaunched with a new roadmap, open-source plans, and a compensation programme following a $223 million exploit.

The decentralized exchange unveiled its post-relaunch strategy in a June 8 blog post, outlining measures to enhance protocol security, upgrade monitoring systems, and transition toward full open-sourcing.

A newly structured white hat bounty programme has also been introduced to support community-driven security efforts.

According to the team, all affected CLMM pools have now been replenished using a combination of recovered assets, treasury funds, and a $30 million loan from the Sui Foundation.

Liquidity providers will regain access to their previous positions, with recovery rates ranging from 85% to 99%, depending on the extent of the damage to each pool.

To compensate for unrecovered losses, Cetus has allocated 15% of its native CETUS token supply to affected users. Of this, 5% will be immediately claimable, while the remaining 10% will be unlocked monthly over the next year, starting June 10. 

The team clarified that the 15% CETUS allocation introduces no new inflation, as it repurposes unvested team tokens within the existing supply cap.

Compensation claims will be tied to LP position NFTs, which will remain valid as certificates for CETUS redemption, even after liquidity is withdrawn.

The protocol has also completed new security audits covering all code patches, contract upgrades, and the compensation contract. Additional rounds of audits and real-time threat detection upgrades are planned to further strengthen protocol resilience.

The Cetus Protocol was exploited on May 22, after an attacker manipulated its liquidity pool pricing by exploiting a flaw in a third-party code library.

In the immediate aftermath, the Cetus team froze operations and began working with Sui validators to recover assets. An on-chain governance vote held on May 29 approved the transfer of $162 million in frozen funds to a multisig wallet for recovery.

Further, the Sui Foundation supported the effort with a dedicated USDC loan to backstop off-chain losses.

Cetus stated that legal proceedings are ongoing in multiple jurisdictions, with law enforcement agencies actively engaged. The attacker, who declined a $6 million white-hat bounty, is reportedly attempting to launder assets, although the team claims that most movements remain traceable.

“We are highly confident that successful arrest and recovering the remaining assets is only a matter of time,” Cetus wrote in the latest announcement.

If additional funds are recovered during the compensation period, users will have the option to redeem CETUS for USDC. Once that period ends, remaining funds will be used for token buybacks and deposited into the community treasury.

The latest announcement, however, failed to lift CETUS, which fell around 7% on the day, extending a downtrend that began in May.



Source link

0 comments
0 FacebookTwitterPinterestEmail
Shaurya Malwa
Crypto Trends

Sui Steps in to Compensate Cetus Losses in Full After $223M Exploit

by admin



Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.

Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.

He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.



Source link

0 comments
0 FacebookTwitterPinterestEmail
SUI stalls below resistance amid $223M Cetus Protocol hack
GameFi Guides

SUI stalls below resistance amid $223M Cetus Protocol hack

by admin



SUI is trading at $3.62 at press time, down 1% in the past 24 hours, as the token struggles to recover from the aftermath of the $223 million Cetus Protocol hack on May 22.

The attack, which is one of the biggest decentralized finance hacks this year, has cast a shadow over Sui’s (SUI) ecosystem. It has sparked concerns about the network’s decentralization and stalled bullish momentum. Before the attack, SUI had risen more than 60% in a month, peaking on at around $4.29 on May 12.

Sui’s impressive rally was thanks to the growing interest in real-world asset tokenization and new institutional partnerships. But the attack triggered a sharp sell-off, with SUI dropping almost 14% in a day. It’s now down nearly 20% from its pre-hack levels and trading in a range between $3.48 and $3.62. 

The exploit targeted flaws in Cetus’s smart contracts using spoof tokens like BULLA and MOJO to manipulate price feeds and deplete liquidity pools. The SUI/USDC pool alone had about $11 million stolen from it. Trading was halted, and the total value locked on the Sui chain fell from $2.13 billion to $1.92 billion.

Cetus protocol’s native token fell by 40%, and due to the loss of liquidity, USD Coin (USDC) momentarily lost its dollar peg. Sui validators successfully froze $162 million of the stolen assets by blacklisting the attacker’s wallet. This prevented most of the funds from leaving the network, but it raised questions about the true extent of validators’ power. 

Critics argue that freezing transactions on demand goes against the idea of decentralization. Some pointed out that a small number of validators and insiders may control most of the network, with very few users participating in governance.

On the market side, Coinglass data shows that derivatives volume in the last day has jumped nearly 40% to $3.57 billion, suggesting increased short-term interest, likely from volatility traders. At the same time, open interest dropped 2.9% to $1.77 billion, showing signs that some traders may be pulling back or taking profits.

Technical indicators show mixed signals. The relative strength index is neutral at around 50. Short-term momentum indicators point to a possible upside, but the moving average convergence divergence is showing a bearish crossover. Short-term moving averages indicate downward pressure, while longer-term indicators provide more bullish signals.

Sui price analysis. Credit: crypto.news

The 50-, 100-, and 200-day moving averages are all flashing buy signals, suggesting that if SUI can withstand the damage caused by the hack, it will continue to be in an overall upward trend. For now, SUI is stuck below the $4 resistance. Traders are watching closely to see whether it can break above or if the fallout from the Cetus hack will keep weighing on the market.



Source link

0 comments
0 FacebookTwitterPinterestEmail
Sui-based Cetus Protocol offers $6M bounty to hacker after $223M exploit
GameFi Guides

Cetus Protocol offers hacker $6M bounty after $223M exploit

by admin



Cetus Protocol, the largest decentralized exchange on the Sui blockchain, is offering a $6 million bounty to the hacker behind a massive $223 million exploit that occurred on May 22.

In a May 22 follow-up statement accompanied by an on-chain message, the Cetus team confirmed they had identified the attacker’s Ethereum wallet and offered a “whitehat settlement” to recover user funds. The hacker is being asked to return 20,920 ETH and all frozen assets on Sui (SUI) in exchange for keeping 2,324 Ethereum (ETH), worth approximately $6 million, and immunity from legal action.

Cetus said this is a time-sensitive offer and that if the funds are off-ramped or mixed, the deal is off. The team is coordinating with law enforcement, cybercrime specialists, the Sui Foundation, and regulators including FinCEN and the U.S. Department of Defense. Inca Digital, a cybersecurity firm, is leading the negotiation efforts.

The breach exploited a vulnerability in Cetus’ pricing mechanism and impacted its concentrated liquidity market maker pools. The attacker used spoof tokens, which are fake or low-value assets with manipulated metadata, to inject tiny amounts of liquidity into trading pools. 

Because of the distortion of those pools’ internal accounting, the hacker was able to take out substantial quantities of valuable tokens, such as SUI and USD Coin (USDC), at incorrect exchange rates. 

The attacker deceived the system into believing the pools were balanced by carefully timing these spoof token deposits with complex flash swaps and price manipulation. As a result, they were able to drain substantial real assets without supplying equivalent value.

Cetus had reportedly passed recent security audits prior to the hack. However, by exploiting internal pricing logic and economic assumptions rather than simple code errors, the attacker’s method evaded typical vulnerability scans.

After initially draining $11 million from an SUI/USDC pool, the attacker quickly intensified the attack. They bridged more than $60 million in stolen funds to Ethereum and bought over 21,900 ETH. They currently have millions of SUI, ETH, and stablecoins in their wallets.

The Sui ecosystem was severely damaged by the exploit. Smaller tokens like AXOL, HIPPO, and SQUIRT lost almost all of their value, while the SUI token dropped as much as 15%. CETUS, the token of Cetus, fell 20–33%. Trading volumes surged as users scrambled to withdraw funds.

Cetus has paused smart contracts following the hack the hack and is attempting to secure its platform. The incident raises questions about the security of DeFi protocols on newer chains like Sui and Aptos (APT). Although these ecosystems offer innovation, analysts warn that vulnerabilities in complex DeFi logic remain a persistent risk.





Source link

0 comments
0 FacebookTwitterPinterestEmail
Close