Sui Network Approves $162 Million for Exploit Victims

TLDR

• Sui Network will reimburse $162 million to affected users.
• 90.9% of validators supported the restitution plan.
• Sui announces a $10 million security initiative post-exploit.

The Sui Network has approved the return of $162 million to victims of the recent Cetus Protocol exploit. This decision follows an on-chain vote by Sui Network validators. The move aims to reimburse affected users and restore confidence in the platform. Cetus Protocol’s operations are scheduled to resume within a week following this decisive community action.

The restitution plan was supported by validators representing 90.9% of the total stake. The funds will be moved into a multi-signature wallet for a methodical reimbursement process. Cetus Protocol is a decentralized exchange operating on the Sui blockchain, which suffered significantly from the exploit.

Coordinated Response and Community Involvement

The Sui community quickly mobilized to address the issue. Within 48 hours, an on-chain decision was passed to initiate fund recovery and restore operations. The Sui Foundation has also committed additional resources to ensure affected users are fully reimbursed.

The restitution involves not only frozen digital assets but also support from the Cetus treasury and a loan from the Sui Foundation. These measures ensure that all affected users receive 100% reimbursement. Cetus Protocol is planning an eight-step roadmap for protocol restoration next week.

Impact on Tokens and Market Confidence

The exploit primarily affected Sui-based tokens and liquidity pool assets. A portion of the funds was bridged to Ethereum, but most remained frozen on the Sui Network. The CETUS token experienced a significant price drop, reflecting continued bearish sentiment despite the restitution efforts.

Besides the direct financial impact, the Sui Network saw increased participation in governance and security discussions. The quick recovery decision highlights the community’s resilience and dedication to strengthening the platform’s security.

Future Security Measures and Initiatives

Following the recovery efforts, Sui has announced a $10 million security initiative. This includes grants, audits, and expanded bug bounties aimed at reinforcing the network’s defenses. Such measures echo responses to previous large-scale DeFi hacks, aiming for enhanced security and trust.

The proactive steps by both Sui and Cetus demonstrate a commitment to improving platform resilience. By addressing vulnerabilities and creating new security frameworks, the Sui community aims to prevent similar incidents in the future.

“Within just 48 hours, the Sui community united to pass this critical on-chain decision.”

Cetus Protocol (official X post)