- Major security breach impacts Sui-based DEX Cetus.
- $223M funds lost, affecting market tokens.
- Team and Sui Foundation are recovering assets.
The Sui-based decentralized exchange Cetus suffered a significant security breach, resulting in a $223 million loss. The hack, detected by the protocol’s team, affected liquidity pools and involved the exploitation of vulnerabilities within the system.
The incident underscores vulnerabilities in decentralized finance infrastructure, shaking trust in Sui-based protocols. The swift pause on smart contracts by the Cetus team aims to mitigate further loss and maintain long-term security.
Cetus Protocol experienced a major exploit impacting several liquidity pools on the Sui blockchain. Approximately $223 million was drained as attackers manipulated price curves with spoof tokens. The Cetus team paused protocol functions to assess vulnerabilities and protect assets.
The Sui Foundation released an official statement stating that, “We are assisting the Cetus team in mitigating the impact of the hack and working on strategies to recover lost assets.”
Sui, USDC, and Cetus tokens were among those severely impacted. Liquidity pools experienced significant distortions and emptying, leading to substantial price drops. The exploit highlights potential risks in concentrated liquidity market makers within DeFi protocols.
The hack’s impact on the market led to a steep drop in the value of CETUS and other assets, raising questions about the security of such protocols. Particular focus has been placed on meme coins, which saw price declines exceed 90%.
This incident highlights the stakes of ensuring DeFi security alongside financial potential. As CETUS and the Sui Foundation collaborate on asset recovery, longer-term considerations for blockchain security and protocol integrity remain pivotal for stakeholders.
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