Cetus to Fully Compensate Users After $223 Million Exploit, Sui Community Vote to Decide $162 Million Release

Cetus, a protocol on the Sui blockchain, plans to fully compensate users affected by the $223 million exploit that occurred on May 22. Of the stolen funds, $61 million was bridged to Ethereum, and $162 million remains frozen on Sui, pending the outcome of a community-driven vote.

Cetus will use its cash and token reserves along with a secured loan from the Sui Foundation, which is specifically intended to cover the amount bridged out of Sui. The loan amount has not been disclosed. The release of the frozen $162 million is contingent on approval by Sui token holders and validators through an on-chain vote.

The Sui Foundation has released code to facilitate the community vote, enabling both Sui validators and token holders to participate. Cetus has confirmed it will begin compensating affected users after the vote, regardless of the result, and aims for 100% user recovery.

The exploit was caused by a flaw in Cetus's pricing logic. Following the incident, Cetus paused all contracts and offered a $6 million bounty to the attacker for the return of the assets bridged to Ethereum, but has not received a response.

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