- Optimism from Hippo_CTO clashes with skeptics citing $37M unfrozen SUI, insider doubts; Sui urges calm during recovery.
- USDC depegs, liquidity wiped, but $NOWN rallies; Sui specialists work to restore pools as ecosystem seeks stability.
The Sui ecosystem faced a major shakeup today with the Cetus Protocol exploit, where an estimated $220M–$230M was drained due to a smart contract bug. However, there’s some good news: Sui CPO @EmanAbio has confirmed that $150M–$160M of the stolen funds have been frozen and will soon be restored to Cetus liquidity pools.
We’ve learned that a Cetus smart contract was hacked this morning for approximately $223M and Cetus subsequently paused their smart contracts to prevent further theft.
Cetus worked together with the other DeFi protocols, the Sui Foundation, and the Sui validators to… https://t.co/Y1iw2sNnPW
— Sui (@SuiNetwork) May 22, 2025
Here’s the breakdown of the affected wallet (0xe2…8ff06):
- SUI Balance: 12,989,340.889631364 SUI (~$54,035,658.1 USD)
- Net Worth in USD: $212,595,506.847
- Net Worth in SUI: 51,104,689.146 SUI
With tokens like CETUS, LOFI, and HIPPO dropping over 50% on DEXs within an hour, as reported by The Block. The CETUS token itself saw a 30% dip overall, though prices on centralized exchanges like Binance (where CETUS/USDT had a 24-hour trading volume of $5.76M) remained more stable, per CoinGecko.
Community reactions are mixed:
- @Hippo_CTO and @Pato_programs are optimistic, seeing this as a relief for the ecosystem and expressing confidence in Sui’s leadership.
- However, @Im_Xisco raised concerns, pointing out that funds are still moving and not fully frozen, as seen in a wallet snapshot showing 8,956,234 SUI (~$37.2M USD).
- @recalibrateme and @Stoic0x expressed skepticism, with some hinting at potential insider involvement and questioning the timing of the smart contract failure.
Sui contributors are urging calm, with recovery specialists on the case. The breach initially caused USDC on Sui to depeg and wiped out major trading pairs, but efforts are underway to stabilize the ecosystem.
Summary of the Exploit
- Date: May 22, 2025.
- Affected Platform: Cetus Protocol (a DEX on the Sui network).
- Type of Attack: Oracle manipulation using spoof tokens.
- Root Cause: A bug in the oracle of Cetus’s smart contract.
- Amount Stolen: $220M–$230M.
- Funds Recovered/Frozen: $150M–$160M (pending restoration).
- Impact: Price drops across Sui-based tokens, USDC depegging, and concerns about decentralization.
- Measures: Freezing of funds, ongoing investigation, and plans for restoration.
Cetus(@CetusProtocol) on #SUI was hacked and lost more than $260M!
The hacker is converting the stolen funds into $USDC and cross-chaining to #Ethereum to exchange for $ETH, with ~60M $USDC already cross-chained.https://t.co/b0uGu8icXrhttps://t.co/0BpKSaygmr pic.twitter.com/txfxLoImOd
— Lookonchain (@lookonchain) May 22, 2025
SUI – Real-Time Price & Ecosystem Analysis – May 22, 2025
SUI is currently trading at $3.95, experiencing a modest -0.52% dip in the last 24 hours, though it remains +6.88% up over the past week. With a market capitalization of $13.18 billion, SUI is ranked #13 globally, confirming its position as one of the dominant Layer 1 blockchains in the current cycle.
The daily trading volume has surged to $3.73 billion, reflecting a 171.9% increase, which suggests a rise in both interest and volatility following recent network developments.
Technically, SUI is holding support near $3.82, and resistance remains in the $4.18 zone. The asset is currently 26.3% below its all-time high of $5.35, while still trading over 980% above its all-time low, reinforcing its reputation as one of the fastest-rising tokens of the past 12 months. Price action suggests consolidation with a potential breakout if the $4.00 barrier is cleared with volume support.
However, recent headlines have added uncertainty: Cetus Protocol, a major DEX on Sui, was exploited in an oracle manipulation attack, resulting in an estimated $200–$220 million in losses.
ANNOUNCEMENT
As of earlier today, we have confirmed that an attacker has stolen approximately $223M from Cetus Protocol. We have took immediate action to lock our contract preventing further theft of funds.
$162M of the compromised funds have been successfully paused. We are…
— Cetus
(@CetusProtocol) May 22, 2025
This event has temporarily shaken confidence across the Sui ecosystem, with SUI-based token prices reacting with sharp intraday swings. Despite the hack, core infrastructure remains secure, and the Sui team is actively coordinating audits and compensation mechanisms for affected users.
SUI’s core value remains tied to its innovative architecture — including zkLogin, sponsored transactions, and programmable transaction blocks — which continue to attract developers focused on performance and user-friendly blockchain design.
The post Latest Update on the Cetus Protocol Exploit on Sui appeared first on ETHNews.
