Cetus Pledges to Fully Reimburse Losses Following Unauthorized Access Worth $223 Million
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After a substantial $223 million hack on May 22, 2025, Cetus Protocol has announced a recovery plan to reassure its community. The cyberattack, which occurred on the Sui blockchain, was met with concern within the crypto world. However, swift action taken by both Cetus and the Sui Foundation has helped alleviate concerns.
Cetus's plan involves using its own funds, tokens, and a loan from the Sui Foundation to compensate those who suffered losses. The company aims to reimburse its users, provided that the Sui community endorses a vote to release $162 million that is currently frozen and not accessible on the network.
If the vote is successful, the combined funds will be sufficient to restore the stolen assets to the affected users. Even if the vote fails, Cetus has guaranteed to pay back its users, demonstrating their commitment to rectifying the situation. The company acknowledges that a technical flaw in their trading system was the root cause of the hack.
Cetus has shared this update through an X post, also announcing that the Sui Foundation is supporting the effort by providing a loan to cover the funds moved off the network by the hacker. In addition, the Sui Foundation is investing $10 million to bolster security measures, aiming to prevent similar incidents in the future.
The vote, which involves Sui validators and token holders, is essential for the recovery process. Cetus urges the Sui community to support this vote to facilitate a swift resolution. The collaboration between Cetus and the Sui Foundation serves as a united front, tackling this crisis in the decentralized finance (DeFi) sector.
Cetus's primary focus is on returning the stolen funds to its users. By taking this proactive approach, the company seeks to enhance the safety of the Sui DeFi system, better equipping it to handle future issues. A detailed plan will be shared, outlining the steps taken to aid those affected by the hack.
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As for the Enrichment Data, its details regarding the voting process, proposal, thresholds, and outcome can be briefly integrated into the article:
- A protocol-wide vote was initiated to authorize the recovery of funds frozen in hacker-controlled accounts.
- The proposal involved a protocol upgrade that would reclaim all frozen funds without hacker signatures, transferring them to a multi-sig wallet held for affected users.
- The vote, involving Sui validators and stakers, required over 50% of the total stake to participate, with a majority "yes" vote needed for approval.
- The early conclusion of the voting process and approval of the protocol upgrade resulted from 90.9% of the stake voting "yes."
- The recovery plan for the Cetus Protocol, following the $223 million hack, involves utilizing their own funds, tokens, a loan from the Sui Foundation, and the unfreezing of $162 million through a community vote in the Sui network's DeFi sector.
- In collaboration with the Sui Foundation, Cetus is making a combined effort to reimburse users affected by the hack by enforcing a protocol upgrade that requires over 50% of stakeholders to participate and a majority "yes" vote for approval, with the aim of preventing future similar incidents due to technological flaws.
