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be tied to LP position NFTs, which will remain valid as certificates for CETUS redemption, even after liquidity is withdrawn.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