A significant amount of funds has disappeared from one of the main DeFi platforms of Sui (SUI), causing users and the crypto community to be on high alert.
Cetus Protocol has suspended all activities, triggering an immediate investigation and review across the ecosystem.
Cetus Protocol Halts All Operations
Cetus Protocol, a major decentralized exchange and liquidity provider on the SUI blockchain, is at the center of a growing security crisis. The team has paused all smart contracts to protect user funds. This action was announced to emphasize their commitment to safety.
"An incident was detected in our protocol, and smart contracts have been temporarily suspended for safety. The team is currently investigating the incident. An additional investigation statement will be announced soon. Thank you for your patience." the company posted
This announcement has raised concerns among investors. No technical reports or detailed post-mortem have appeared on Cetus Protocol's main platform. As SUI market volatility increases and liquidity pools remain uncertain, users and analysts continue to monitor the team's updates.
According to reports, the Cetus team said the incident was due to an oracle bug. However, on-chain analysts have reported the event as a hack.
"The largest LP provider of SUI has just been hacked. Hope CETUS resolves this and takes quick action. This is affecting the entire ecosystem." Crypto analyst Gordon wrote on X.
The official suspension of Cetus operations has raised urgent questions about the scale of the breach. The SUI community is waiting for a clear explanation. Real-time blockchain data shows asset movements continue, and users are expecting an official explanation from Cetus Protocol about the cause and severity of the incident.
Community Reaction... Attack Scope
Analysts and on-chain observers have collected new details. Initial evidence shows pools marked with SUI have been depleted, and investigators quickly tracked large amounts of USDC and other tokens moving outside the ecosystem. These rapid movements suggest a calculated and well-planned attack, not a simple oracle malfunction.
"The Sui Cetus hack is a hack, not an 'oracle bug' as the team suggests. The oracle vulnerability is correct. However, this wallet is draining funds from Cetus and desperately bridging USDC and other tokens externally. Millions of dollars have disappeared." An on-chain analyst posted on X.
Other observers agreed with these findings. Subsequent posts explained the scope of the incident.
"Cetus, the main DEX and primary liquidity provider of SUI, has reportedly been hacked. The attacker has taken control of all SUI-marked pools, stealing over $200 million and has also started moving USDC." Analysis platform Onchain Lens said.
Total loss estimates vary. Some sources suggest the attackers took $11 million, while others believe the amount could exceed $200 million. However, these amounts are awaiting official confirmation from blockchain explorers.
