Cetus Aims to Reimburse Users After $223M Exploit

Cetus, a protocol based on the Sui blockchain, announced on May 27 that it has the capability to reimburse all users affected by the May 22 exploit, provided that Sui token holders approve the release of frozen funds through an upcoming on-chain vote.

According to a social media post by Cetus, the protocol's cash and token reserves, combined with a secured loan from the Sui Foundation, are sufficient to cover the $61 million in assets that the attacker transferred to Ethereum. The loan from the Sui Foundation is specifically designated to cover the amount bridged outside of the Sui network, not the remaining $162 million that validators have frozen within the network.

An upcoming community vote will determine whether the frozen tokens, which were halted by validators following the exploit, will be unlocked. Cetus has requested the full support of the Sui community to ensure that affected users can be made whole. The protocol has also stated that it will publish a detailed repayment plan, regardless of the outcome of the vote.

The exploit at Cetus is notable as the ninth-largest hack in the crypto industry in terms of the amount stolen. The Sui Foundation confirmed the arrangement, describing the loan as an "extraordinary measure" aimed at restoring user balances beyond what Cetus could fund independently.

Sui Foundation officials stated that the community vote proposal will appear on-chain shortly, and validators are prepared to move the frozen tokens if holders approve. The loan proceeds are currently in escrow, and deployment could occur as soon as the smart contract community concludes the proposal.

Cetus paused all contracts on May 22 after an attacker exploited a flaw in the protocol’s pricing logic. On-chain data indicates that the breach resulted in $223 million worth of tokens, with $61 million transferred to Ethereum and $162 million halted by Sui validators.

Cetus reached out to the exploiter through on-chain messages, offering a $6 million bounty in exchange for the funds bridged to Ethereum. However, the protocol did not receive a response. Project developers expressed their deep regret over the impact of the exploit and committed to beginning the recovery process immediately once the mechanics for distributing reimbursements are finalized.

Rebuilding user trust remains Cetus's top priority, and the protocol is committed to providing periodic progress updates. However, no timeline has been disclosed for code fixes or the resumption of trading.