Sui Hack: Cetus Protocol Provides Update On Recovered Funds - Coinspeaker

Key Notes

• Sui and Cetus Protocol have shared the latest update on recovering stolen funds.
• The embattled protocol has secured approval to send $162 million to a multisig wallet from 90% of validators.
• The hacker was offered a $6 million white-hat bounty reward, which has not been paid yet.
• .

Recently hacked Cetus Protocol took to X to inform its users and the general public of its progress in recovering the stolen funds. It stated that it had received approval via the on-chain vote to transfer quarantined funds to a multisig trust account.

Cetus Recovery Proposal Receives Support Through On-chain Vote

The Sui blockchain-native Decentralized Exchange (DEX), known as Cetus Protocol, was a victim of a major exploit on May 22. The perpetrator targeted a vulnerability in its concentrated liquidity market maker contract.

The Cetus hacker leveraged unchecked math operations in a third-party code library. Once in, it manipulated prices using a flash swap, draining several pools by faking liquidity deposits and repeatedly withdrawing real tokens.

The unfortunate event led to the loss of approximately $220 million in cryptocurrencies, although the protocol later froze $162 million of the funds. About 48 hours later, the Sui community united to pass a critical on-chain vote for the proposed recovery process.

More than 90% of validators and stakers voted in favor, marking a pivotal moment for the entire ecosystem. Apart from unlocking the frozen funds, the proposal roadmap involves full recovery and restarting operations within one week.

To achieve this, Cetus intends to focus on data restoration, the protocol upgrade, the CLMM contract upgrade, asset conversion and deposits, and compensation contracts, among other things.

The reported transfer of previously quarantined funds on Sui to the multisig trust wallet, jointly managed by Cetus, the Sui Foundation, and OtterSec, is the latest progress update. With the funds now secure, the hacked platform has entered the next phase of its asset recovery. The focus is now on achieving every other item listed in the roadmap.

Markedly, the Cetus team has scheduled June 2 for a public X space, where members of the Sui community will be given a breakdown of the situation and progress made so far.

“We’re pushing forward with focus and urgency to bring Cetus back online and fully restore protocol operations for all users,” the Sui-based DEX added.

Cetus Protocol Offers Hacker $6 Million as White Hat Bounty

Notably, Cetus Protocol has been on top of its game, trying to recover all funds, including the $162 million that was frozen. To recover the $220 million stolen funds, it has offered the hacker a $6 million Whitehat bounty. According to Sui Vision, all legal actions against the hacker will be dismissed should the 20,920 Ethereum be returned.

A contrary move from the bad actor, like an attempt to transfer them off-ramp or send them further to crypto mixers, will cause the matter to “escalate with full legal and intelligence resources.”

To salvage the hack situation, the Sui Foundation offered a secured loan to help Cetus fully compensate affected users. The DEX would combine the loan with its treasury assets to fully reimburse affected users.

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