Sui Network Community Votes on Returning $61 Million Stolen in Cetus Protocol Hack

The Sui Network community is currently engaged in a heated debate following the recent hack of Cetus Protocol, a decentralized exchange operating on the Sui blockchain. The hack, which occurred on May 22, 2025, resulted in the theft of $223 million in cryptocurrency. In response to the incident, Cetus Protocol swiftly paused its smart contract to prevent further losses. The team announced that $162 million of the stolen funds had been frozen, leaving approximately $61 million unaccounted for. This action has sparked a contentious discussion within the community about the balance between decentralization and user protection.

The community is now considering a vote on whether to return the frozen funds to the hacker in exchange for the remaining stolen assets. This proposal has ignited a debate about the true nature of decentralization within the Sui Network. Critics argue that the ability to freeze funds contradicts the core principles of decentralized finance (DeFi), which emphasize user autonomy and control over assets. Proponents, however, contend that such measures are necessary to protect users and maintain trust in the platform.

One key issue raised by the proposal is whether intervening to return user funds undermines the network’s decentralized ethos. Critics argue that such actions could weaken confidence in the immutability of smart contracts and set a precedent for future bailouts. However, supporters say the move would demonstrate that the network takes user protection seriously. “Helping users recover their funds should be the top priority,” wrote prominent Sui community member 0XPain.Sui on X. “This vote is about letting those affected come together and choose what to do next.”

No technical details have been confirmed regarding how the fund return would be executed if the vote passes. The Sui team, led by Mysten Labs, has not yet disclosed the on-chain method that would be used. However, community members say they trust that any protocol changes would be implemented with strict attention to security and network stability. Despite the risks, some believe this vote reflects a form of decentralized governance in action. “Let’s not forget that decentralization means letting the majority decide, not blindly sticking to code,” 0XPain.Sui added.

Another concern is whether the vote could create a safety net that discourages developers from implementing strong security practices. However, the Sui community voices have stressed that the current proposal should not be seen as a guarantee of future rescue efforts. “The community stepped in once doesn’t mean they’ll always do it,” wrote 0XPain.Sui. He emphasized that project teams must remain accountable for their own security infrastructure.

The incident has also raised questions about the security of DeFi platforms, even those built on newer blockchain ecosystems like Sui. The exploit highlights the ongoing challenges and risks associated with DeFi, including vulnerabilities in smart contracts and the potential for large-scale hacks. Cetus Protocol has offered a $5 million bounty for information leading to the identification and arrest of the attacker, as well as a deal to cease all legal action if the stolen funds are returned. The investigation into the theft is ongoing, with Cetus Protocol collaborating with law enforcement agencies in hopes of recovering the remaining stolen funds and bringing the perpetrators to justice.

The debate within the Sui Network community underscores the complex interplay between decentralization and security in the DeFi space. As the community weighs the pros and cons of returning the frozen funds, it must also consider the broader implications for the future of DeFi and the trust of its users. The outcome of this debate will likely shape the direction of the Sui Network and its approach to user protection and decentralization.