Robber Swipes $223 Million in Cryptocurrency from Decentralized Swap on Sui Platform
The decentralized exchange (DEX) Cetus Protocol on the Sui blockchain has temporarily halted smart contract operations after a significant security breach on May 22. An unidentified threat actor managed to drain around $223 million in assets from the platform[1][3][5].
In a statement, Cetus confirmed the breach and reported that they have already initiated measures to impede further theft and safeguard most of the affected funds[2][5]. They revealed that approximately $162 million of the stolen funds have been successfully frozen[2][5].
In addition, a considerable number of Sui validators are now disregarding transactions tied to the hacked addresses, with the intention of restricting asset movement[5]. Preliminary analysis indicates that part of the stolen assets were converted to USDC stablecoins and transferred to the Ethereum network, though the exact whereabouts of these funds remain unknown[3].
Cetus is collaborating with the Sui Foundation, fellow ecosystem members, and blockchain forensics experts to track the stolen assets and inspect their flow[5]. They are also communicating with the hacker responsible for the breach regarding a settlement. If the perpetrator agrees to cooperate with the terms of the agreement, they will receive approximately 2,324 ETH ($6.2 million) as a bounty and be given the option to keep the funds[5]. Cetus emphasized that if the settlement is accepted promptly, they will refrain from pursuing legal action to facilitate a smoother recovery process.
In summary, while this security incident resulted in substantial losses, Cetus is taking proactive steps such as contract suspension, fund freezing, and negotiating with the responsible party to recover the majority of the stolen funds and reinforce platform security[2][5].
Sources:
- DappRadar
- Cetus Protocol
- PeckShield
- Etherscan
- CoinDesk
- Despite the significant security breach on Cetus Protocol, which led to the loss of around $223 million in assets, the team is taking proactive steps to recover the majority of the stolen funds, such as suspending smart contract operations, freezing affected funds, and negotiating with the responsible party for a settlement.
- As a result of the security breach on Cetus Protocol, some Sui validators are disregarding transactions tied to the hacked addresses with the intention of restricting asset movement, and part of the stolen assets have been converted to USDC stablecoins and transferred to the Ethereum network, though their exact locations remain unknown.
