Cetus Protocol Exploited: $223M Drain Rocks Sui Network

Cetus Protocol Suffers Massive $223 Million Exploit

Cetus Protocol, a leading decentralized exchange (DEX) on the Sui network, has been targeted in a significant exploit, resulting in the loss of approximately $223 million worth of tokens. The incident has sent shockwaves through the Sui ecosystem, triggering substantial price declines for several Sui-based tokens.

Details of the Attack

According to Cetus Protocol's official statement, a significant portion of the stolen funds, around $162 million, has been "paused," and they are collaborating with the Sui Foundation to recover the remaining assets. Preliminary analysis indicates that the attacker leveraged spoof tokens, such as BULLA, to manipulate price curves and reserve calculations. By adding minimal liquidity, the attacker seemingly manipulated the internal LP state, allowing them to repeatedly withdraw real assets like SUI and USDC without contributing equivalent value.

On-Chain Analysis

Data reveals the exploiter's wallet, identified as 0xe28b50, currently holds over 12.9 million SUI, valued at roughly $54 million. Furthermore, the wallet's total holdings exceed 32.9 million SUI (approximately $137 million), suggesting that the attacker may have already transferred or swapped funds through various channels to obscure the trail. The wallet remains active, indicating ongoing efforts to further obfuscate the stolen funds.

Market Impact

The exploit has had a dramatic impact on the Sui market. The CETUS token itself has plummeted by 40% in value. Sui-based memecoins, including BULLA and MOJO, have experienced even more severe declines, with prices dropping by over 90%.

Response and Mitigation

The Cetus team has taken immediate action by pausing smart contracts and launching a thorough investigation. Binance founder CZ has offered support from the exchange's team to assist Sui in addressing the situation.

Key Takeaways:

• Cetus Protocol, a major liquidity provider on Sui, was exploited for $223 million.
• The attacker used spoof tokens and manipulated liquidity pools.
• CETUS and other Sui-based tokens experienced sharp price drops.
• The Cetus team is working to recover funds and investigate the incident.
• The Sui Foundation and Binance are offering support.

This incident underscores the importance of robust security measures and rigorous auditing in the DeFi space.