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Cetus Protocol Restores 99% of Liquidity Pools After Major Security Breach
Cetus Protocol, a decentralized exchange (DEX) operating on the Sui and Aptos blockchains, officially resumed operations on June 8, 2025, following a critical exploit on May 22 that led to the platform losing approximately $162 million, including 20,920 ETH in assets. The team executed a swift recovery plan backed by a $30 million USDC loan from the Sui Foundation, $7 million in reserves, and partial fund recovery efforts. As a result, concentrated liquidity market maker (CLMM) pools have been restored to 85–99% of their pre-hack levels.
Transparent Recovery Efforts Strengthen Community Trust
The Cetus team emphasized that liquidity depth and user confidence remain top priorities. A spokesperson described the incident as “a defining test of resilience,” highlighting the collective efforts of stakeholders and ecosystem partners. In just 17 days, the DEX reestablished key trading functionality—an impressive turnaround applauded across the DeFi industry.
To maintain transparency, Cetus maintained open community communication, issuing frequent updates and hosting forums. This proactive engagement has helped preserve community morale during the rebuilding process.
Security Reform and Legal Actions in Motion
In response to the attack, Cetus launched a white-hat bounty program offering up to $6 million for the return of stolen funds, though the attacker declined and allegedly began laundering assets. Legal action is now underway across multiple jurisdictions.
Security has been reinforced through code audits, third-party reviews, and a shift to an open-source development model, aiming to foster community involvement in oversight and long-term trust.
Compensation and Market Reaction
To compensate affected users, 15% of CETUS token supply was allocated for LP reimbursements. 5% became claimable at relaunch, with the remaining 10% unlocking over 12 months from June 10. The tokens originate from unvested reserves to prevent token inflation.
Following the relaunch, CETUS token saw a modest 7–12% dip, trading around $0.11, reflecting short-term caution. However, sentiment remains cautiously optimistic as the platform rebuilds.
Cetus Protocol’s recovery may serve as a model for future DeFi crisis responses—combining fast technical action, transparency, and long-term user protection.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
