The decentralized finance (DeFi) platform Cetus, built on the Sui blockchain, is one step closer to recovering $162 million in frozen digital assets after suffering a $220 million exploit on May 22. A critical community governance vote, set to end on June 3, will determine whether the recovery plan proceeds.
$162M in Stolen Funds Frozen
Soon after the incident, Cetus successfully froze $162 million of the stolen funds — a significant step toward mitigating the damage. In a post shared on X (formerly Twitter) on May 27, the Sui Network confirmed that Cetus had initiated a governance proposal to return the frozen assets.
“If the community vote is approved, the funds will be recovered from the attacker and held in a multisig trust account until they can be returned to accounts that had positions in Cetus,” the Sui post read.
Cetus Seeks Emergency Loan From Sui Foundation
To facilitate a full recovery of user funds, Cetus has also requested an emergency loan from the Sui Foundation, in addition to support from Sui validators and the broader community.
In a statement published on May 27, Cetus claimed that, if the vote passes and the emergency loan is granted, the protocol will be in a position to “fully cover the stolen assets,” achieving 100% reimbursement for all affected users.
Cetus Recovery Plan: Key Elements
- Community Governance Vote: Concludes June 3; determines whether frozen funds can be returned.
- Multisig Trust Holding: Approved funds will be moved into a secure multisig wallet.
- Emergency Loan: Requested from the Sui Foundation to bridge the reimbursement gap.
- Treasury Allocation: Cetus will commit treasury funds to assist in the reimbursement process.
What This Means for DeFi Governance
The Cetus recovery vote could serve as a case study in decentralized crisis response — showing how community governance, foundation support, and technical interventions (like freezing assets) can work together to protect user funds in the aftermath of a security breach.
The vote outcome, expected by early June, will be watched closely across the DeFi ecosystem as users assess the Sui network’s ability to respond swiftly and transparently to threats.