Sui Network’s Cetus Protocol Faces Major Oracle Exploit

Lede: The Cetus Protocol on Sui network has been exploited on May 22, 2025, with attackers stealing $260 million, followed by a suspension of operations.

Nut Graph: The breach has significantly disrupted the Sui network’s DeFi ecosystem, sparking major volatility and urgent security assessments.

Sui Network’s Cetus Protocol Exploited

The Sui-based Cetus Protocol faced a massive security breach, with attackers manipulating oracle vulnerabilities. Approximately $260 million was stolen, prompting the team to pause protocols immediately. In a statement, the Cetus Protocol team shared, “We have suspended our smart contracts and are conducting an investigation into the exploit. We are currently collaborating with the Sui Foundation to retrieve the stolen funds.”

Key actors such as the Cetus team and Sui Foundation are investigating the exploit. Critical actions like suspending smart contracts have been taken swiftly to mitigate further risks. This breach involves sophisticated strategies linked to cross-chain fund movements.

Impact on the Cryptocurrency Market

This exploit has severe repercussions across the cryptocurrency markets, with numerous Sui-based tokens losing up to 90% of their value. According to a blockchain analyst from LookOnChain, “The hacker is converting the stolen funds into USDC and cross-chaining to Ethereum to exchange for ETH, with ~60M USDC already cross-chained.”

Economically, the breach has resulted in a significant financial drawdown. Market confidence has plummeted, compelling stakeholders to re-evaluate security measures. Such incidents fuel an increase in demands for regulatory oversight.

Response and Future Implications

Law enforcement and blockchain analysts are working to disable pathways exploited by the attacker. Inter-agency collaboration exemplifies efforts to enhance security postures following the breach. This incident serves as a catalyst for strengthened frameworks.

Historically large exploits like these expose systemic risks and drive technological advancements in security protocols. As the industry adjusts, expect an uptick in rigorous security audits. Regulatory frameworks may evolve to address these vulnerabilities.