- Event involves a $223 million hack on Cetus Protocol, impacting market.
- Validators froze $162 million, $60 million still unrecovered.
- Sui Network supports recovery plan, abstains from voting.
On May 21, 2025, Cetus Protocol on the Sui Network faced a significant security breach, leading to a loss of around $223 million. Validators froze $162 million, but roughly $60 million remains unrecovered.
Sui Networkโs Role
Sui Network, a key player in this situation, is supporting an on-chain vote for the recovery plan while remaining neutral. โThis is an extraordinary request in response to extraordinary needโCetusโs customer funds are at stake. After consideration, we support their call for an on-chain vote,โ stated the Sui Foundation. They have expressed that Cetus must compensate all users fully. Cetus Protocol has paused its smart contracts to prevent further damage and is calling for community approval through a vote.
Market Reactions and Implications
Market reactions include a 42.82% drop in SUI trading volume and a 40% decrease in the CETUS token price. The financial fallout is significant, underscoring concerns about blockchain security and governance.
The hackโs implications are under scrutiny, with debates over the ability to freeze assets and the potential consequences for blockchain immutability. Some community members criticize transaction censorship and believe recovery plans could undermine decentralization principles.
This situation may influence future regulatory discussions around blockchain governance. The community continues to debate the governance model, weighing the pros and cons of fund recovery against blockchainโs fundamental principles.
About the author
AI Behavior Exposes User Experience Concerns
An AI's behavior revealed a concerning user experience issue, prompting discussions in digital technology sectors recently.
CME Group to Launch Real-Time Crypto Indices December 29
CME Group and CF Benchmarks to introduce real-time indices for HBAR, APT, TAO on December 29, 2025.
U.S. Nonfarm Payrolls Drop by 105,000 in October 2025
Insights into the U.S. labor market as nonfarm payrolls decline by 105,000 in October 2025, according to the Bureau of Labor Statistics' report.
SharpLink Reports 465 ETH Staking Rewards
SharpLink Gaming earns 465 ETH in staking rewards, boosting their ongoing Ethereum treasury strategy.
CoinWโs โGolden Selectionโ Tool Unconfirmed by Official Sources
CoinW's new trading tool lacks official confirmation, creating market uncertainty.
American Bitcoin Corp Surpasses 5,000 Bitcoin Holdings Mark
American Bitcoin Corp surpasses 5,098 Bitcoin holdings, securing a position in the top 20 publicly traded Bitcoin treasury companies. Discover the implications for the crypto market.
Related
AI Behavior Exposes User Experience Concerns
An AI's behavior revealed a concerning user experience issue, prompting discussions in digital technology sectors recently.
CME Group to Launch Real-Time Crypto Indices December 29
CME Group and CF Benchmarks to introduce real-time indices for HBAR, APT, TAO on December 29, 2025.
U.S. Nonfarm Payrolls Drop by 105,000 in October 2025
Insights into the U.S. labor market as nonfarm payrolls decline by 105,000 in October 2025, according to the Bureau of Labor Statistics' report.
SharpLink Reports 465 ETH Staking Rewards
SharpLink Gaming earns 465 ETH in staking rewards, boosting their ongoing Ethereum treasury strategy.
CoinWโs โGolden Selectionโ Tool Unconfirmed by Official Sources
CoinW's new trading tool lacks official confirmation, creating market uncertainty.
American Bitcoin Corp Surpasses 5,000 Bitcoin Holdings Mark
American Bitcoin Corp surpasses 5,098 Bitcoin holdings, securing a position in the top 20 publicly traded Bitcoin treasury companies. Discover the implications for the crypto market.
