Sui Ecosystem Rocked by $200M Cetus Protocol Hack
The Sui blockchain ecosystem has suffered a major blow with the exploitation of its largest decentralized exchange, Cetus Protocol. Over $200 million in mutual funds have been drained, impacting trading functionality across the network.
The attack, which exposed a critical vulnerability within the Sui DeFi infrastructure, has been identified as an 'oracle manipulation attack'. Attackers used 'spoof tokens' to manipulate Cetus Protocol's internal price curves and liquidity reserve calculations, allowing them to withdraw real assets without depositing meaningful value.
Approximately $162 million of the compromised mutual funds have been 'paused' in efforts to recover them. However, the attacker's wallet remains active, holding millions in SUI tokens and having already bridged a significant amount of USDC to other chains. The native CETUS token plummeted by over 40% following the news, while numerous Sui-based meme coins experienced even steeper declines.
In response, Cetus Protocol has temporarily paused its smart contracts for safety and is actively investigating the incident. The team has engaged the broader Sui ecosystem, third-parties, and professional anti-cybercrime organizations for incident analysis and mutual fund tracing. Despite the disruption, the native SUI token has shown surprising resilience, with only minor price fluctuations following the news.
The exploit of Cetus Protocol has resulted in over $200 million in drained mutual funds, impacting the Sui blockchain ecosystem. While efforts are underway to recover the mutual funds and investigate the incident, the full extent of the damage and potential long-term effects remain to be seen.
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