Sui Network Moves to Restore $162M After Cetus Hack

Following a major security breach at decentralized exchange Cetus, the Sui blockchain has moved swiftly to recover user funds.

Validators have now approved a critical proposal to return $162 million in frozen assets, setting the stage for full compensation and platform recovery.

The exploit, which occurred on May 22, drained over $220 million in digital assets. Thanks to immediate intervention, a significant portion of those funds were quickly locked on-chain. After a week of deliberation, Sui’s validators concluded a governance vote on May 29, with overwhelming support — over 90% in favor — to transfer the seized funds to a multisig wallet managed under a restitution plan coordinated by Cetus.

The move has reignited debates around decentralization, as some critics question the precedent of validators freezing assets. However, others see it as a necessary evolution in crypto security — a coordinated response to growing on-chain threats.

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Cetus, expressing thanks for the community’s rapid support, outlined its next steps: transferring funds to the multisig wallet, deploying an upgraded recovery mechanism, and completing system restoration. The protocol expects to resume operations within a week.

A dedicated compensation contract is also in the works. Once audited and deployed, it will allow affected liquidity providers to claim any remaining losses not covered by the recovered assets.

The full recovery plan also involves support from the Sui Foundation and the Cetus treasury, highlighting a broader ecosystem effort to rebuild user trust after the incident.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.