Cetus Protocol Relaunches After $60M Exploit: Restores Liquidity, Offers Compensation, and Goes Open Source to Rebuild Trust
Cetus Protocol, a decentralized exchange (DEX) on the Sui blockchain, has relaunched after a major hack in May 2025 that led to a $60 million loss and suspension of services. Following the breach, the protocol froze $162 million in assets, then relaunched on June 8 with a $30 million recovery line from the Sui Foundation. Cetus has restored 85–99% of affected liquidity pools and initiated a compensation plan, distributing 15% of its native CETUS token to impacted users—5% immediately and 10% to be unlocked over 12 months, representing a 5% supply increase. Additional measures include making the platform open source for enhanced security and transparency, launching a white-hat bounty program, and transitioning to DAO governance. Legal action is ongoing to pursue those responsible for the hack. While many users remain cautious due to earlier losses and lingering trust concerns, Cetus’s quick recovery, user reimbursement, and open-source shift set a notable example in DeFi. For crypto traders, these developments may help stabilize CETUS and Sui ecosystem assets by fostering renewed market confidence, though short-term sentiment remains wary.
Neutral
The initial hack and resulting loss caused negative sentiment and user distrust in Cetus Protocol. However, the swift relaunch, significant restoration of liquidity pools, clear compensation to users, transition to open sourcing the platform, and introduction of security programs have helped mitigate immediate concerns. While some users remain wary and potential inflationary pressure exists from increased CETUS token supply, the comprehensive recovery and transparency initiatives could encourage renewed confidence over the medium to long term. For now, market sentiment toward CETUS and related Sui ecosystem tokens is cautious but shows signs of stabilization, justifying a neutral price impact classification.