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  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
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Cetus exploit recovery plan

Cetus exploit recovery plan could fully reimburse affected users with community support

https://icn.live/wp-content/uploads/2025/05/cetus-plan.mp3
  • by ICN.live
Fatima Al-Nouri

Cetus exploit recovery plan is gaining attention as the protocol vows to repay affected users in full.

The project was hit with a major exploit on May 22, resulting in a loss of $223 million. Out of this, $61 million was bridged to Ethereum, and $162 million remains frozen by Sui validators.

Cetus confirmed it can reimburse all impacted users, but there’s a condition. Sui token holders must approve the release of the frozen funds through an upcoming on-chain vote. The decentralized exchange (DEX) has urged the community for full backing in this decision. According to Cetus, its own reserves, along with a secured loan from the Sui Foundation, are enough to cover the Ethereum-bridged assets.

Recovery plan hinges on the vote

The loan only applies to assets moved outside the Sui network. The remaining funds are still locked within the ecosystem. A successful vote would allow validators to release the $162 million and pave the way for complete reimbursements.

Sui Foundation described the loan as an “extraordinary measure” to restore user balances. The loan is already held in escrow, and its deployment awaits the smart contract-based community proposal. This bold step has sparked discussions about decentralized governance and how communities handle major setbacks.

Trust hinges on the Cetus exploit recovery plan

Cetus paused all trading activities after the breach, which exploited a flaw in pricing logic. The attacker was offered a $6 million bounty for returning the funds, but has not responded. Cetus developers expressed deep regret and promised a detailed, step-by-step repayment roadmap regardless of the vote’s outcome.

This case ranks as the ninth-largest exploit in crypto history, per the Rekt News leaderboard. The Cetus exploit recovery plan has now become a benchmark for how DeFi protocols handle disaster, transparency, and user protection.

Cetus has emphasized rebuilding user trust as its top mission. While it has yet to reveal a timeline for code fixes or trading resumption, the commitment to periodic updates signals long-term dedication.

If the community votes to release the funds, Cetus could set a precedent in how Web3 projects react to exploits.

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What happened during the Cetus exploit?

On May 22, Cetus Protocol suffered a critical exploit caused by a vulnerability in its pricing logic. The breach led to the loss of $223 million worth of tokens. Of that, $61 million was bridged to Ethereum, while $162 million was frozen by Sui validators. Cetus immediately paused all trading and initiated contact with the attacker, offering a $6 million bounty for the return of funds. Despite efforts, there was no reply. The team has since focused on planning a full recovery for users.

How will the Cetus exploit recovery plan work?

Cetus plans to reimburse affected users fully using a mix of its reserves and a loan from the Sui Foundation. The $61 million bridged to Ethereum will be covered by this loan. The remaining $162 million is currently frozen and can only be returned if Sui token holders vote in favor of unlocking the funds. A step-by-step repayment plan will be shared soon, regardless of the vote’s result. This approach depends heavily on community cooperation.

Why is the community vote important in this situation?

The upcoming on-chain vote by Sui token holders is pivotal. It will determine whether the $162 million in frozen assets can be released to complete reimbursements. Without this approval, only the Ethereum-bridged funds can be covered by Cetus and the Foundation’s loan. The vote not only impacts user reimbursements but also tests the decentralized governance mechanisms of Sui’s blockchain and sets an important precedent for DeFi recovery efforts.

What does this mean for crypto users and investors?

This incident showcases both the risks and the resilience within the DeFi ecosystem. Although the exploit was massive, Cetus’s proactive response and the community-driven solution show how decentralized protocols can act swiftly and responsibly. If the reimbursement succeeds, it could strengthen user confidence in similar platforms. For investors, it’s a reminder to assess the security layers and governance models of protocols before participating.

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