Unlock Sui’s Bold Move: Secret Loan to Cetus for User Rewards!

Sui Foundation Offers Loan to Cetus for User Compensation After $223M Exploit

The Sui foundation has provided a secured loan to decentralized exchange Cetus. This move aims to fully compensate users affected by the recent $223 million exploit.

On May 27, the foundation aims to help Cetus fully compensate users affected by a recent $223 million exploit.

In a statement on X, the foundation explained that the loan will cover funds the hacker managed to move out of the Sui network before wallets were frozen. Cetus will use the loan along with its treasury assets to reimburse affected users, pending community approval to unlock frozen funds.

Cetus echoed this in a separate statement,apologizing for the incident adn asking the Sui community to support the recovery vote. “We can now fully cover the stolen assets if the locked funds are recovered through the upcoming community vote,” the team said.

The exploit occurred on May 22, targeting a flaw in Cetus’ concentrated liquidity market maker contracts. The attacker manipulated prices using a flash swap and drained several pools by faking liquidity deposits. The hacker transferred a significant amount of stolen assets to Ethereum, even though validators froze $162 million on-chain.

the hack caused the CETUS token to drop by 40%, and the total value locked on the Sui network fell from $2.13 billion to $1.77 billion.

The Sui Foundation also announced a $10 million commitment to fund audits, bug bounties, and formal verification tools.This aims to encourage white-hat hackers to find vulnerabilities before they are exploited.

While some in the community voiced concerns about freezing wallets, others praised the swift response and transparent handling of the crisis. A detailed recovery plan from Cetus is expected soon.