The attack was on the liquidity pools of Cetus Protocol, and the attacker came into possession of assets worth $52 million in SUI tokens, approximately $20 million in wrapped USDT, and $4.9 million in Haedal Staked SUI (HASUI). The attacker exchanged a significant amount of these assets for USDC and bridged about $60 million into the Ethereum network. The transfer of the fund has caused higher trading volumes and volatility of ETH/USDC on the Ethereum network.
After the breach, Cetus Protocol halted its smart contracts temporarily to prevent further losses and opened an investigation into the breach.
🚨Alert Announcement 🚨
— Cetus🐳 (@CetusProtocol) May 22, 2025
There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.
Effect on the Sui Economy and Market Response
The hack has also had a critical impact on the Sui ecosystem. Tokens on the Cetus Protocol have lost significant value, with some losing over 75% of their value. The SUI token itself saw its price fall by approximately 12.3% following the hack.
The incident has also impacted other Sui ecosystem projects. For example, Sui’s money market, Scallop, suspended all borrowing on its site as a precautionary measure.
Wider Implications and Security Issues
This exploit has brought into question the vulnerabilities of decentralized finance (DeFi) platforms, especially those developed on newer blockchain networks like Sui. This exploit has raised the question of whether tighter security protocols, like comprehensive smart contract audits and real-time monitoring of systems, should be enacted.
The movement of the stolen funds to Ethereum also indicates the challenge of cross-chain security and the potential for exploits to cascade through multiple blockchain environments. Cetus Protocol hack is an eye-opener to the security concerns that face DeFi platforms. As the world of cryptocurrencies continues to grow, projects must prioritize security protocols to protect user funds and maintain the trust of the community.
Cetus (@CetusProtocol), the leading DEX and primary liquidity provider on $SUI, has reportedly been hacked.
— Onchain Lens (@OnchainLens) May 22, 2025
The attacker gained control of all SUI-denominated pools, exploiting over $200M, and has also started moving $USDC.https://t.co/Qh3cx2ymZM pic.twitter.com/cbv3d6KHLx
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