Cetus Proposes Recovery of $162M After Exploit and Temporarily Suspends xCETUS Staking Rewards on Sui DEX
Sui-based decentralized exchange Cetus has taken significant measures following a major exploit that led to $162 million in assets being frozen. In response, Cetus initiated a community vote on a protocol update to recover the stolen funds, with the goal of transferring these assets to a multisig wallet managed by Cetus, the Sui Foundation, and OtterSec, ultimately aiming to return them in full to affected users. The vote requires over 50% staked SUI participation and majority approval, highlighting the importance of decentralized governance. Concurrently, Cetus announced the successful distribution of this week’s xCETUS staking rewards, but due to operational adjustments and the temporary suspension of its Concentrated Liquidity Market Maker (CLMM) pools, xCETUS staking rewards will be paused for the next week. This short-term halt may affect staking returns and liquidity management, though this week’s rewards are unaffected as they were registered before the change. These updates reflect active crisis management and operational adjustments, with potential implications for user trust and risk sentiment in the Sui DeFi ecosystem.
Neutral
The news presents both positive and negative developments for Cetus and the Sui ecosystem. The exploit and pause in xCETUS staking rewards could raise caution among users, potentially impacting short-term confidence and participation. However, the proactive recovery proposal, transparent governance, and commitment to returning stolen funds may help restore user trust and stabilize the protocol’s reputation over the long term. Given the mixture of risk and responsive management, the expected immediate price impact on SUI and xCETUS is neutral, as traders may wait for the outcome of the recovery efforts before making significant moves.