Cetus Reveals Recovery Plan, Taps SUI for Bridge Loan
David ClarkeA Sui community vote requires over 50% participation and majority approval to reclaim $162 million in frozen funds from the Cetus exploit.[...]
Sui Network Reels from $223 Million Cetus Exploit, Proposes Community-Driven Recovery Plan
In a remarkable display of resilience, the Sui ecosystem has rallied to recover from a devastating $223 million exploit that shook the decentralized exchange Cetus. The network has now announced a recovery initiative that could potentially override hacker-controlled wallets through a protocol-level upgrade, pending community approval.
The proposed vote will determine whether $162 million in frozen funds can be forcefully reclaimed from the attacker's wallets as part of Cetus's "larger recovery plan." This bold move aims to ensure a 100% recovery for all affected users, made possible by a critical loan from the Sui Foundation and the deployment of Cetus's own cash and token treasuries.
The recovery plan follows a recent attack on Cetus that exploited flaws in the DEX's automated market maker and oracle logic, enabling hackers to drain liquidity pools across the network. In response, the Sui Foundation has released code for an on-chain community vote, allowing Sui validators and holders to participate directly through stake delegation.
If approved, the protocol upgrade will permit aliased addresses to perform two transactions, transferring the frozen funds into a 4-of-6 multisig wallet jointly controlled by Cetus, auditing firm OtterSec, and the Sui Foundation. This collaborative effort seeks to ensure the safe recovery of the stolen assets and restore confidence in the Sui ecosystem.
As the community vote unfolds, the Sui network has already witnessed a significant impact on its native token, SUI, which initially tumbled from $4.18 to $3.82 upon news of the Cetus exploit. However, the token has since shown signs of recovery, trading at $3.89 as of early Wednesday morning.
The Cetus exploit has also sent shockwaves through the broader Sui ecosystem, with notable meme coins like Lofi (LOFI), Sudeng (HIPPO), and Squirtle (SQUIRT) experiencing steep declines of 76%, 80%, and 97%, respectively, in just one hour. The Cetus token itself dropped 53% over the same time frame, highlighting the widespread impact of the incident.
As the Sui community rallies to address this crisis, the outcome of the upcoming vote will be closely watched, as it could pave the way for a comprehensive recovery and a renewed sense of confidence in the network's resilience.
