Cetus Protocol experienced a substantial hack, resulting in approximately $223 million in losses. In response to the damage, the team and Sui validators took immediate action.
Response to the Hack
Immediately following the attack, Sui validators froze assets totaling $162 million to limit losses. The Cetus team, Sui Foundation, and key validators coordinated their efforts to address the issue. 'Involved entities are driving recovery,' remarked Changpeng Zhao from Binance.
Token Price Drop
Following the incident, the value of CETUS token dropped by 40%, while memecoins BULLA and MOJO saw declines of over 90%. The financial market reacted swiftly, highlighting the profound impact of the attack on related assets.
Recurring Trends in DeFi Attacks
This attack mirrors previous incidents in DeFi, where liquidity manipulation is a common tactic. Success in recovery and upgrade implementation will dictate further outcomes. Past cases suggest potential for regained stability if community-driven strategies prove effective.
The hack on Cetus Protocol reflects a growing threat to decentralized financial systems. Effective response and implementation of updates may help restore user trust.
