Following a $223M breach, Sui Network ensures full compensation for Cetus.

In the wake of a $223 million hack targeting Cetus Protocol, the largest decentralized exchange on the Sui blockchain, the Sui Foundation has extended a loan to enable full reimbursement to affected users.

This financial support focuses solely on the bridged assets lost during the exploit and is separate from the frozen funds locked on-chain, which remain subject to a community vote.

Cetus announced on X that combining this loan with its own treasury resources allows it to cover all stolen off-chain assets—contingent on approval from the forthcoming on-chain governance proposal to unlock the frozen tokens.

“This loan from the Sui Foundation is pivotal in achieving 100% user recovery,” Cetus stated, underscoring the importance of community backing.

The foundation described these actions as exceptional steps taken to protect the broader Sui ecosystem, emphasizing that complete recovery hinges on community consent.

The attacker manipulated spoof tokens like BULLA to exploit pricing flaws and siphon real assets, including SUI and USDC, from liquidity pools without equivalent deposits.

While over $162 million of stolen tokens were frozen on-chain shortly after the breach, the hacker moved other assets across bridges. The attacker’s wallet remains active, holding more than 12.9 million SUI, with some assets likely dispersed across networks.

Following the exploit, Cetus halted smart contracts and initiated an investigation. Its governance token, CETUS, plunged almost 40%, and overall DeFi activity on Sui slowed amid safety concerns.

Thanks to the Sui Foundation’s loan, Cetus is now ready to start reimbursing users immediately, aiming to restore confidence within the community.