Sui blockchain validators have overwhelmingly approved a recovery plan following a significant $223 million hack targeting the Cetus Protocol on May 22, 2025. The vote garnered 90.9% support from validators, enabling financial compensation measures and technical recovery steps to protect the network’s integrity and user assets.
The Cetus Protocol suffered a breach in its Concentrated Liquidity Market Maker (CLMM) pools, which led to assets worth $162 million being frozen on the Sui blockchain and over $60 million bridged out before containment. In response, the Sui Foundation has taken a leading role by providing a substantial loan to cover frozen assets, supplementing Cetus Treasury funds to ensure affected users receive full reimbursement.
The recovery plan includes relaunching the affected CLMM pools contingent upon successful independent audits to verify the security and stability of the protocol. This community-driven effort highlights decentralized governance's role in managing crises and sets a precedent for future DeFi exploit responses. The coordinated approach by Sui validators, the Sui Foundation, and the Cetus team underscores a collaborative commitment to restoring trust and financial stability within the Sui ecosystem.
Market reactions are cautiously optimistic, with the CETUS token showing renewed value as investor confidence begins to return. However, complete restoration depends on audit outcomes and ongoing community support. The incident also raises potential regulatory considerations concerning blockchain security protocols and governance mechanisms. Overall, the recovery plan aims to mitigate financial loss, rebuild user trust, and strengthen security practices within the Sui ecosystem.