Cetus Protocol Updates Users on Fund Recovery Progress After Hack
Cetus Protocol, a decentralized exchange on the Sui blockchain, is recovering from a hack that occurred on May 22, resulting in approximately $220 million lost. The hacker exploited a vulnerability in the concentrated liquidity market maker contract, manipulating prices to drain funds.
Cetus Recovery Plan
- Over $162 million of stolen funds were frozen after the exploit.
- An on-chain vote received over 90% support from validators and stakers for the recovery proposal.
- The plan includes transferring quarantined funds to a multisig trust account managed by Cetus, the Sui Foundation, and OtterSec.
- Steps to recovery involve data restoration, protocol upgrades, asset conversion, and compensation contracts.
- A public update is scheduled for June 2 to inform users about progress.
📢 Progress Update
Following the approval of the on-chain vote, the previously quarantined funds have been securely transferred to a multisig trust wallet.
— Cetus🐳 (@CetusProtocol) May 31, 2025
Cetus Protocol has also offered a $6 million white hat bounty to the hacker for the return of 20,920 Ethereum, promising to dismiss legal actions if the funds are returned. Failure to comply may lead to escalated legal measures.
The Sui Foundation is providing a secured loan to assist with user compensation, which will be combined with Cetus’s treasury assets.