Cetus Protocol, the leading decentralized exchange on the Sui blockchain, suffered a major exploit, leading to over $200 million in theft.
Cetus Protocol Hack
On May 22, 2025, the Cetus Protocol fell victim to one of the year's largest DeFi hacks, raising concerns about platform security. The theft occurred due to manipulation of liquidity pools.
Investigation and Consequences
The investigation revealed that the security breach was linked to a vulnerability in oracle implementation. The Sui Foundation, in partnership with Inca Digital, is offering a $5 million reward for information on the attackers. Changpeng Zhao of Binance confirmed his support, highlighting the severity of the situation.
Market Reactions and Broader Implications
Immediately following the incident, the SUI token price dropped by 5.5%, reflecting lost investor confidence. This attack on Cetus ranks as the second-largest in 2025, raising questions about vulnerabilities in DeFi related to liquidity pool manipulations.
The Cetus Protocol incident underscores the need for improved security measures in decentralized financial platforms to prevent similar attacks in the future.
