Sui Foundation Supports Cetus Loan for User Compensation

Following a devastating $223 million hack, Cetus Protocol has introduced a person complete plan to reimburse affected customers, leveraging a mortgage from the Sui Basis and its treasury funds, signaling a strong restoration effort inside the Sui ecosystem.

Cetus Secures Mortgage from Sui Basis

On Could 22, 2025, Cetus Protocol, the biggest decentralized change (DEX) and liquidity supplier on the Sui blockchain, suffered a large safety breach, ensuing within the lack of roughly $223 million in digital belongings. 

The exploit, attributed to a vulnerability in Cetus’s good contract pricing mechanism, allowed attackers to control liquidity swimming pools utilizing spoof tokens, draining important funds, together with $11 million from the SUI/USDC pool. 

Learn extra: Cetus Protocol Hackers Exploited $223M, Terrorizing the SUI Ecosystem

The assault despatched shockwaves via the Sui ecosystem, inflicting a 40% drop within the CETUS token value and a 14% decline in SUI worth, alongside extreme disruptions to different Sui-based tokens, which misplaced almost all their worth.

Supply: CoinGecko

In response, Cetus swiftly paused its good contracts to stop additional losses and collaborated with the Sui Basis, validators, and different DeFi protocols to freeze $162 million of the stolen funds. Regardless of these efforts, roughly $61 million was bridged to Ethereum, complicating restoration.

To deal with person losses, Cetus has secured a mortgage from the Sui Basis, guaranteeing full compensation, a transfer that has garnered important consideration inside the crypto group.

7-Day Voting Course of for Compensation Plan

The Cetus person complete plan, which goals to revive person confidence, is topic to a community-driven vote involving Sui validators and token holders via stake delegation. 

The voting started at 8:00 PM on Could 27 and runs till 8:00 PM on June 3, 2025 (UTC). The proposal requires over 50% of staked SUI to take part (excluding Abstain) and a majority of approving votes to go. 

As of now, 37 of the 114 Sui validators have voted, with a 100% approval charge, signaling robust group assist.

Supply: SuiScan

The Sui Basis’s assist has been pivotal, with the group not solely offering monetary backing but additionally releasing code to facilitate the on-chain voting course of.  

This incident has sparked debates about decentralization, because the Sui validators’ capacity to freeze funds raised issues amongst some group members about centralized management. Nevertheless, others defended the motion as a mandatory measure to guard customers, citing related interventions by Ethereum and Solana in previous exploits.

With $160 million already secured and plans for full reimbursement underway, Cetus’s response might set a precedent for dealing with DeFi breaches.

The group’s optimistic response to Cetus Protocol’s democratic method has pushed a 24% surge within the CETUS value over the past 24 hours, with the token now buying and selling at $0.1591.

Supply: TradingView