Sui Network to Enhance Security Measures Following $223M Cetus Protocol Hack

Sui Network plans to allocate $10M for security enhancements following a breach on its Cetus Protocol, which saw $223M stolen and $162M frozen. The hack led to a 14% drop in the SUI token price and highlighted security vulnerabilities in the ecosystem. Industry experts are calling for increased regulatory scrutiny and protective measures to mitigate such risks.

Sui Network has pledged $10 million to bolster its ecosystem security following a significant breach that saw $223 million stolen from the Cetus Protocol, a decentralized exchange built on Sui. The attack, which occurred on May 22, 2025, involved a vulnerability in an AMM function that allowed for manipulation of liquidity positions through arithmetic overflow. The exploit highlighted the need for more robust security measures across the blockchain ecosystem.

In response to the breach, Sui validators froze approximately $162 million of the stolen assets, with around $60 million bridged to Ethereum before the freeze. The incident led to a 14% drop in the SUI token price and a sharp decline in the network's total value locked (TVL) from $2.1 billion to $1.5 billion [1].

The Sui Network has announced plans to shift towards shared accountability, supporting dApp builders directly to prevent future vulnerabilities. The $10 million investment will be used for smart contract audits, bug bounty programs, formal verification tools, and collaboration with developers to reinforce dApp security. The initiative aims to reduce the likelihood of similar incidents and improve the overall security of the ecosystem [1].

The announcement comes amidst criticism over Sui's proposed on-chain vote to return the frozen funds to Cetus. While the foundation pledged neutrality, many community members raised concerns over validator power and potential centralization, drawing comparisons to Ethereum's 2016 DAO incident. The vote sparked fresh debate over governance and the immutability of blockchain networks [1].

Cetus has offered a $6 million white-hat bounty, and the Sui Foundation has posted an additional $5 million reward for information leading to the attacker's identification. Industry experts are calling for increased regulatory scrutiny and protective measures to mitigate such risks in the future [1].

References:
[1] https://beincrypto.com/sui-security-upgrade-cetus-hack/