Cetus, a key liquidity protocol on the Sui network, recently fell victim to a substantial hacking attempt where over $223 million worth of cryptocurrency was stolen. This breach led to a double-digit depreciation in over 46 coins associated with the Sui network, and popular Sui-based memecoins recorded plummeting values of up to 97%. However, with swift interventions, notably from the Binance platform, recovery efforts gained momentum.
Cetus Attacked: Massive Losses Ensue
Hackers exploited a vulnerability in Cetus’s smart contract, using counterfeit coins to manipulate price data and reserves. They successfully extracted real assets from various liquidity pools, including the prominent SUI/USDC pair. Initially, a team member misidentified the attack as a software error, but it was later confirmed to be an orchestrated cyber assault. In response, Cetus officials froze the smart contract to prevent further damage.
Cetus’s official statements disclosed that while $223 million in crypto assets were compromised, immediate action led to the freezing of $162 million. The team, in collaboration with the Sui Foundation and other ecosystem partners, is currently tracking the remaining funds. A comprehensive incident report is anticipated to be published shortly.
Binance Steps Up: SAFU Fund Support on the Table
Binance co-founder and former CEO, CZ, expressed in a social media statement that their team would extend full support to the Sui ecosystem. CZ confirmed that Binance swiftly liaised with the Sui team and technical experts are actively deciphering the attack’s specifics. During this period, deploying Binance’s SAFU fund to cover user losses or provide technical support remains a potential course of action.
The incident not only affected Cetus but also highlighted the ongoing concerns about security vulnerabilities in the industry. Similar to the criticism faced by Circle during the previous Bybit attack, slow response times have further magnified the distrust in centralized organizations. Cyvers’s CEO, Deddy Lavid, emphasized that neglecting real-time alerts is among the sector’s major weaknesses.
The Cetus breach joins the ranks of the largest crypto thefts in recent months, alongside February’s $1.4 billion Bybit hack and the $400 million internal theft from Coinbase.
