Cetus Protocol Hack Halts Trading on Sui Network

2 mins mins

Key Points:

Cetus Protocol on Sui blockchain hacked; $223 million stolen.
Major liquidity pools were depleted.
CETUS token’s value dropped by approximately 40%.

Cetus Protocol faced a major security breach on May 22, 2025, where attackers siphoned approximately $223 million from liquidity pools on the Sui blockchain.

The significant depletion of liquidity highlights vulnerabilities in DeFi, stirring debate on decentralization ideals.

Cetus Protocol Suffers $223 Million Loss on Sui Blockchain

Cetus Protocol on the Sui blockchain suffered an attack, leading to a substantial loss in liquidity pools. The protocol’s smart contracts were halted immediately in a bid to minimize further financial damage.

The breach’s financial impact was substantial, prompting the Sui Foundation and network validators to collaborate in tackling this crisis. Market assessments confirmed the CETUS token fell nearly 40%. Up to $162 million has been “paused” by halting smart contracts.

“Cetus worked together with the other DeFi protocols, the Sui Foundation, and the Sui validators to collectively protect the ecosystem. A large number of validators identified the addresses with the stolen funds and are ignoring transactions on those addresses until further notice.” — Sui Foundation, Official Statement

Community responses highlight concerns over centralization and transactional censorship by validators. There is criticism about the extent of control exercised by network operators in addressing such vulnerabilities.

Security Concerns and Market Volatility in DeFi Ecosystem

Did you know? The method used in the Cetus Protocol attack mirrors similar vulnerabilities exploited in prior DeFi hacks on Ethereum and Solana, emphasizing ongoing security challenges with automated market makers.

According to CoinMarketCap, CETUS currently trades at $0.17, reflecting a 17.24% decline in the past 24 hours. Its market cap is approximately $126.7 million, with elevated trading volume reaching $367.76 million, marking a 1157.29% increase. Comprehensive data highlights the token’s volatility and market reactions.

cetus-protocol-daily-chart-2 — Cetus Protocol(CETUS), daily chart, screenshot on CoinMarketCap at 18:53 UTC on May 22, 2025. *Source: CoinMarketCap*

Insights from the Coincu Research team suggest lingering concerns over DeFi’s security and control dynamics present complex challenges for broader adoption. Regulatory scrutiny may tighten as these events test trust in decentralized finance systems.