Cetus Secures Sui Foundation Loan to Fully Reimburse Users After $223M Exploit

Cetus Protocol, the largest decentralized exchange (DEX) on the Sui blockchain, suffered a major exploit last week, resulting in the loss of $223 million in crypto assets. The attacker manipulated spoof tokens—such as BULLA—to exploit vulnerabilities in the protocol’s price curves and reserve logic, allowing them to drain SUI, USDC, and other legitimate assets from liquidity pools.

Over $162 million in stolen tokens were frozen on-chain, while the remaining funds were bridged out via multiple pathways. The attacker’s wallet remains active, holding at least 12.9 million SUI, with more likely laundered across networks.

Sui Foundation Provides Emergency Loan

In a significant move to stabilize the situation, Cetus has secured a critical loan from the Sui Foundation. This funding, combined with Cetus’s own cash and token treasuries, allows the protocol to fully cover all off-chain stolen assets, provided that the community votes to release the frozen funds.

“Using our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain if the locked funds are recovered through the upcoming community vote,” Cetus stated on X.
“This includes a critical loan from the Sui Foundation, making a 100% recovery for all affected users possible.”

Role of the Community Governance Vote

The on-chain community vote will decide whether to authorize the use of frozen assets to complete the reimbursement. Cetus is urging the Sui community to support this vote:

“We humbly ask for the Sui community’s full support to recover the funds via the upcoming vote. We recognize that this is an extraordinary ask forced by our actions… but we think it is the right decision—especially for those affected.”