TLDR
- Sui community voted to recover $162 million in frozen funds.
- Over 90% of Sui validators supported the recovery vote.
- Cetus committed to fully compensating affected users.
The Sui blockchain community has passed a crucial governance vote to recover $162 million in frozen funds following a breach of the Cetus decentralized exchange. This move marks an important development in decentralized governance within the cryptocurrency field.
The vote is to transfer assets into a secure multi-signature wallet to ensure safe return to users. This strategy follows an exploit on May 22, 2025, where $223 million was drained, but $162 million was quickly frozen with Sui validators’ intervention.
Sui Community Involvement in Fund Recovery
The Sui Network announced this community vote on May 27, 2025, on their Twitter account. The recovery effort gathered significant support, with over 90% affirmation from Sui validators.
Changpeng Zhao, Binance founder, has shown his support for this significant recovery effort, although specific quotes are not cited. The Cetus team also asked for community backing, describing the vote as essential to the recovery process.
Impact on Financial Assets and Recovery Steps
The exploit targeted Cetus Protocol’s Concentrated Liquidity Market Maker pools, draining $223 million with $162 million being quickly immobilized. The Sui Foundation provided a loan to support Cetus’s recovery stand.
Cetus committed to compensating affected users fully by combining internal treasury resources and the loan. Even in the event of a failed vote, Cetus assured partial compensation to start immediately.
Decentralized Governance Responds to a Security Crisis
This recovery marks a pivotal moment in how decentralized communities tackle crises without traditional financial institutions. The unique decision-making process involved Sui validators and stakeholders directly.
The Cetus protocol operates on the Sui network, functioning as a decentralized exchange with CLMM pools. Despite the significant exploit, the swift response highlights the resilience and structure of the Sui blockchain.
Related Cryptocurrencies and Market Reactions
Primarily affected is SUI, the native token on Sui network, alongside assets within Cetus’s liquidity pools. The successful governance vote may increase confidence in both Sui blockchain and Cetus Protocol.
The broad support for the recovery effort may also positively influence market sentiment surrounding SUI and the associated tokens within the ecosystem.
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