The Cetus Protocol, a decentralized exchange operating on the Sui blockchain, has resumed its operations as of June 4, 2025, after experiencing a substantial security breach involving a $223 million exploit.
The attack impacted multiple liquidity pools and assets, including the CETUS token and assets native to the Sui ecosystem, resulting in significant asset losses. Coordinated efforts among the Cetus team, the Sui Foundation, validators, and the community have been central to recovery initiatives.
By leveraging cash reserves, token treasuries, and a critical loan from the Sui Foundation, Cetus aims to fully compensate affected users. Furthermore, an upcoming community vote will decide the return of frozen on-chain assets. The prompt and collaborative response reflects a strong community governance model as well as enhanced crisis management strategies within DeFi platforms.
While the exploit caused disruptions such as asset freezes and temporary user activity interruptions, the Sui Foundation's intervention helped stabilize the ecosystem and reassure participants. The incident has also intensified industry-wide discussions around security protocols and resilience in DeFi.
This event stands as one of the largest DeFi exploits in the Sui ecosystem's history, and its handling may set new standards for governance and security enhancements in decentralized finance moving forward.