In a bold move to retrieve stolen assets and protect its users, Cetus, a leading decentralized exchange (DEX), has offered a $6 million white hat deal to the hacker responsible for a major Ethereum (ETH) exploit. This comes after the attacker’s activity was halted on the Sui Network, blocking their attempts to launder the funds.
The Exploit: How It Happened
Earlier this week, Cetus experienced a sophisticated smart contract exploit that led to the loss of approximately $6 million worth of ETH. The attacker used a complex flash loan strategy to manipulate liquidity pools, drain funds, and attempt cross-chain movement to avoid detection.
“This was a highly targeted attack,” said a Cetus spokesperson.
“But thanks to quick coordination with Sui, we managed to freeze further malicious activity.”
The breach shook investor confidence but showcased the rapid response capabilities of modern DeFi protocols.
White Hat Deal: A Second Chance for the Hacker
In an effort to recover the funds and avoid prolonged legal battles, Cetus has proposed a white hat bounty of $6 million—allowing the hacker to return the stolen ETH in exchange for amnesty and a reward.
“We’re giving the attacker an opportunity to do the right thing,” Cetus announced on X (formerly Twitter).
This approach, while controversial, has been effective in past DeFi breaches, including incidents involving Poly Network and Euler Finance.
Sui Network’s Crucial Role
The Sui blockchain played a critical role by identifying and freezing the attacker’s wallet address shortly after the exploit. Thanks to enhanced surveillance tools and real-time alerts, the malicious transactions were flagged and blocked before conversion or withdrawal.
This swift action prevented the hacker from fully laundering the stolen ETH across chains.
The move has been praised as a landmark moment in DeFi security coordination, highlighting how cross-chain ecosystems can collaborate to combat cybercrime.
Implications for DeFi Security
This incident underscores growing vulnerabilities in decentralized finance, but also points to improving response mechanisms:
- Faster on-chain surveillance tools
- Stronger cross-chain partnerships
- White hat bounty programs that incentivize ethical behavior
Cetus’s proactive stance may encourage other DeFi protocols to adopt similar strategies in future breaches.
A Test of Trust and Innovation
The $6 million white hat deal is more than a recovery effort—it’s a test of DeFi’s maturity. By offering a second chance and showcasing unity between blockchains, Cetus and Sui are redefining how decentralized systems handle crisis and recovery.
All eyes are now on the hacker’s next move—and the future of ethical hacking in Web3.