Cetus Hack: Smaller Sui Tokens Wiped Out, Markets Rattled

Cetus Hack: Will the Attacker Return the Funds for $6M and Immunity?

Cetus Hack – Cetus Protocol, the largest decentralized exchange (DEX) on the Sui blockchain, has confirmed a $223 million exploit that occurred on May 22, prompting a significant bounty offer of $6 million to the attacker in exchange for the safe return of stolen assets.

In an on-chain message and official statement, Cetus revealed it had traced the attacker’s Ethereum wallet and is offering a “whitehat settlement.” Under the terms, the attacker must return 20,920 ETH and all stolen assets held on Sui, in exchange for keeping 2,324 ETH (roughly $6 million) and immunity from legal prosecution.

Attack Exploits DeFi Logic, Not Code Vulnerabilities

The breach exploited a flaw in Cetus’ pricing mechanism used in its concentrated liquidity market maker (CLMM) pools. The attacker manipulated the protocol using spoof tokens—fake or low-value tokens with distorted metadata—triggering false pricing balances. This allowed the attacker to extract large volumes of SUI, ETH, and stablecoins like USDC at incorrect rates using flash swaps and price manipulation strategies.

This form of attack bypassed traditional security audits, as it did not rely on direct code vulnerabilities but rather on economic exploitation of DeFi logic.

Market Fallout and Security Response

After initially draining $11 million from a SUI/USDC pool, the attacker escalated the operation, ultimately acquiring over 21,900 ETH. The stolen assets have since been bridged across multiple chains, including Ethereum.

The Sui ecosystem suffered significant damage: tokens like AXOL, HIPPO, and SQUIRT saw their value nearly wiped out, while SUI dropped 15%. The CETUS token fell by 20–33%, and trading volumes spiked as users rushed to withdraw funds.

Cetus Coordinates With Authorities, Pauses Smart Contracts

Cetus has paused all smart contracts and is working with Inca Digital, FinCEN, the U.S. Department of Defense, and other cybersecurity agencies to resolve the incident. The team emphasized that the $6 million bounty is time-sensitive, warning that the deal is void if the stolen funds are laundered or off-ramped.

This event highlights ongoing security challenges in DeFi protocols, especially on emerging blockchains like Sui and Aptos. While innovation drives growth, complex vulnerabilities continue to pose serious threats to user funds.

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.