Cetus Protocol Secures Loan from Sui Foundation to Fully Compensate Users
Cetus Protocol, the largest decentralized exchange on the Sui blockchain, has obtained a loan from the Sui Foundation to fully reimburse users after a $223 million exploit.
Key points include:
- The loan will exclusively cover bridged assets, separate from frozen funds pending a community vote.
- Cetus is prepared to recover stolen assets if locked funds are approved for release by the community.
- The exploit involved manipulating spoof tokens, draining SUI, USDC, and other assets from liquidity pools.
- Over $162 million in stolen tokens were frozen on-chain; the attacker’s wallet retains significant assets.
- Cetus paused smart contracts and initiated an investigation; its governance token, CETUS, dropped nearly 40% amid liquidity concerns.
- With the secured loan, Cetus aims to start reimbursing affected users immediately.
The recovery plan relies on the outcome of a governance proposal that may authorize using frozen funds for user reimbursements.