Cetus Protocol, a decentralized exchange (DEX) built on the Sui blockchain, is officially back online following a 17-day outage caused by a $223 million exploit. The platform has restored liquidity pools to between 85% and 99% of their original levels and is pursuing legal action against the attacker.
$162M Recovered, Sui Offers Loan Support
After the breach, Cetus managed to recover $162 million of the stolen assets. The attacker exploited a vulnerability in the shared math library contract, manipulating token valuation and extracting massive liquidity.
Cetus attempted to contact the attacker for a resolution, but the individual began laundering funds via Tornado Cash, leading to legal escalation.
To protect users, the Sui Foundation stepped in, offering a loan to Cetus on May 28 that enabled the DEX to compensate affected users for their initial losses. This intervention helped Cetus gradually restore confidence and liquidity across its pools.
Liquidity Pools Back to Functional Levels
As of today, liquidity pools on Cetus have been replenished to between 85% and 99%, allowing users to trade with normal slippage rates. The restoration was critical in reestablishing platform functionality and encouraging user activity.
According to DefiLlama, Cetus’ Total Value Locked (TVL) stands at $124 million, a notable rebound from post-exploit lows but still down from the $284 million TVL recorded before the breach.
TVL recovery shows growing user trust, but full recovery may depend on legal resolution and continued support from the Sui ecosystem.
What This Means for DeFi Security
The Cetus incident is a stark reminder of smart contract vulnerabilities in DeFi infrastructure. While the attacker remains unidentified, the exploit’s scale has drawn renewed attention to the importance of rigorous audits and secure library contracts.
Despite the setback, Cetus has made rapid progress in restoring functionality and liquidity. The platform’s resilience and community support signal its commitment to long-term recovery.
Conclusion
Cetus DEX is back online with liquidity nearly fully restored after a massive $223 million exploit. With $162 million recovered, legal action underway, and support from Sui’s ecosystem, the platform aims to rebuild trust and regain its pre-attack momentum in the DeFi space.