Cetus Protocol, the largest decentralized exchange on the Sui blockchain, fell victim to a significant attack resulting in a $260 million loss.
Attack on Cetus Protocol
On May 22, 2025, Cetus Protocol was attacked, leading to a loss of $260 million. The attacker used spoofed tokens to trick the protocol into swapping real funds for fakes, rapidly draining over $260 million in liquidity.
Response from Sui Foundation
The Sui Foundation and the Sui Network team quickly responded to the situation by launching a $5 million reward program for any information that could help catch the perpetrators. "Our priority remains protecting the community and supporting a positive resolution," noted the Sui Network team in their announcement.
Implications for Sui
Following the attack, the price of SUI dropped to around $3.68, reflecting a 5.5% decrease over the past 24 hours. This has heightened investor concerns about DeFi safety. Despite short-term issues, SUI's long-term prospects remain strong thanks to ongoing ecosystem development and institutional support. If sentiments stabilize, SUI could rebound towards $4.20–$4.50, while in case of escalating distrust, it may dip to $3.20.
The attack on Cetus Protocol underscores the need for improved token verification systems and liquidity management in the Sui ecosystem. The swift response and transparency from the Sui Foundation may turn this crisis into an opportunity for enhanced security.
