Cetus Protocol on the Sui blockchain suffered a major hack resulting in the theft of approximately $223 million from liquidity pools.
Attack on Cetus Protocol
On May 22, 2025, Cetus Protocol was attacked, with hackers siphoning approximately $223 million from its liquidity pools. In response to the severity of the situation, the protocol immediately halted its smart contracts to minimize further financial losses.
Discussion of Vulnerabilities in DeFi
The significant depletion of liquidity highlights vulnerabilities in DeFi, stirring discussions about the principles of decentralization. Community discussions have raised concerns about the extent of control exercised by network operators in addressing such vulnerabilities.
Market Impact and CETUS Token Aftermath
The financial repercussions were substantial, with market assessments confirming that the CETUS token fell nearly 40%, trading at approximately $0.17. Its market cap is around $126.7 million, with trading volume reaching $367.76 million.
The situation around Cetus Protocol highlights critical security issues in DeFi, emphasizing the need for greater oversight and transparency in decentralized finance.
