The recent hack on the Cetus Protocol, built on the Sui blockchain, marks one of the largest incidents in DeFi history, leading to the theft of $223 million. In response, the Sui Foundation has developed a recovery plan aimed at full user compensation.
Details of the Cetus Hack
As a result of the breach, $223 million was stolen from the Cetus protocol. The Sui Foundation is providing support in funding a compensation plan that utilizes both Cetus’s own reserves and a loan facilitated by the Sui Foundation.
Market Reaction to the Incident
Following the recovery announcements, the price of the Cetus token increased by 16.69%, indicating market confidence in the protocol's resilience. Both Sui and Cetus tokens saw significant increases, reinforcing investor confidence.
Expert Commentary and Project Future
Experts emphasized that community support and institutional backing are crucial for navigating crises. The official announcement from Cetus stated, 'The Sui Foundation has offered a loan specifically designed to cover assets that were bridged out of the Sui network, enabling a path toward 100% user compensation pending a community vote on the frozen assets.'
The Cetus hack highlights the necessary advancements in security measures within DeFi projects. The support from the Sui Foundation and the positive market response indicate that the community is poised to support projects through challenging times.
