Cetus proposes a complete $223 million compensation for affected users following a significant security incident in the DeFi sector.
Cetus, a major DeFi platform on the Sui blockchain, suffered a significant security breach in May 2025, losing approximately $223 million due to a math-library bug in an overflow check vulnerability[1]. Despite the setback, Cetus managed to relaunch its services within 17 days, following a comprehensive recovery plan that focused on decisive technical fixes, strategic partnerships, and community governance[1].
The exploit underscored the importance of rigorous DeFi security practices, emphasising the ongoing challenges platforms face in securing complex smart contracts within the DeFi community[1]. In response, Cetus promptly disabled the affected CLMM pools and implemented a patch to address the smart contract vulnerability[1].
The Sui Foundation played a crucial role in the recovery process by providing a loan to Cetus, offering critical liquidity support during the recovery phase[1]. This operational stability and user confidence restoration were essential in Cetus' full resumption of services.
Community engagement was also a key aspect of the recovery. Cetus invited its community to participate in a governance vote, influencing important recovery steps and demonstrating the protocol's commitment to decentralized decision-making[1]. The community vote will determine the recovery of the funds, and Cetus has expressed its preparedness to fully reimburse the stolen assets, contingent upon the recovery of locked funds[1].
Robust security measures and transparent communication remain crucial for maintaining user confidence and fostering sustainable growth in the DeFi sector. Maintaining user trust remains Cetus' highest priority, as it continues to work towards rectifying the incident and rebuilding its reputation within the Sui ecosystem[1].
Following these measures, Cetus has since been an active part of the broader Sui ecosystem recovery, evident in the rebound of SUI's market performance[4][5]. As the DeFi landscape evolves, platforms like Cetus will continue to face challenges, but with a focus on security, community engagement, and transparency, they can navigate these challenges and contribute to a safer and more resilient DeFi future.
References: [1] Cetus DeFi Blog Post, May 2025. [2] CoinDesk, "Cetus DeFi Suffers $223 Million Exploit on Sui Blockchain," May 2025. [3] Decrypt, "Cetus DeFi Exploit: What Happened and How Was It Fixed?," May 2025. [4] CoinMarketCap, "Sui (SUI) Price Chart," accessed June 2025. [5] BitinfoCharts, "Sui (SUI) Network Activity," accessed June 2025.
