• TEXT= DATE: 20.06.2025 TransferMole  |  IDO  | Blockchain Service
  • TIMER= 20.06.2025
  • BUTTON= DISCOVER MORE
  • 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%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • 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%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

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Cetus to recover stolen ETH

Cetus to recover stolen ETH with $6M hacker bounty and blockchain freeze response

https://icn.live/wp-content/uploads/2025/05/sui-haKCN.mp3
  • by ICN.live
Leila Al-Khatib

Cetus to recover stolen ETH is at the center of a major DeFi security saga this week.

The protocol, based on the Sui blockchain, was exploited for $223 million through a vulnerability in its liquidity pool smart contracts. As part of its crisis response, Cetus has offered a $6 million bounty to the hacker in exchange for the return of 20,920 ETH, valued at $56.3 million.

This strategic move aims to recover the stolen Ethereum without escalating into prolonged legal battles. In a message sent through X (formerly Twitter), Cetus confirmed that legal and public action would be suspended if the hacker accepts the bounty and returns the funds. However, it warned that legal actions would resume if the attacker tries to launder the assets.

$6M Bounty Offer as Damage Control

Cetus’ bounty offer marks a growing trend among DeFi platforms choosing negotiation over confrontation. This pragmatic approach highlights the delicate balance between security enforcement and fund recovery. Working alongside Inca Digital, Cetus has identified the Ethereum wallet tied to the hacker. The bounty offer is time-sensitive, suggesting urgency and a potential opportunity for swift resolution.

Meanwhile, Sui validators have taken an extraordinary step by ignoring transactions from addresses linked to the attacker. This rare action shows collaboration between Cetus, the Sui Foundation, and other DeFi projects within the Sui ecosystem.

Cetus, to recover stolen ETH, has made progress by successfully pausing $162 million worth of compromised assets. This move prevents the hacker from moving the bulk of the stolen funds and may increase the chance of recovery. However, it also raises a significant concern within the crypto community.

Critics argue that the ability of Sui validators to censor transactions challenges the decentralized nature of the blockchain. With only 114 validators and heavy token ownership concentrated among the founders, some analysts claim Sui is showing signs of centralization.

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Crypto Prices Plunge as Fallout Spreads

The impact of the exploit extended beyond Cetus. Its native token CETUS dropped 50%, settling at around $0.1714. Other tokens like LOFI and HIPPO, which are part of the same ecosystem, also saw sharp declines.

Still, the proactive measures taken—including the bounty, freezing mechanisms, and collaboration with validators—could serve as a blueprint for future DeFi crisis management. Whether the hacker returns the funds or not, Cetus to recover stolen ETH remains a developing case, with implications for the entire blockchain gaming and DeFi space.

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What happened with the Cetus Protocol hack?

Cetus Protocol, a decentralized exchange on the Sui blockchain, experienced a major exploit targeting its liquidity pool smart contracts. A hacker drained over $223 million in assets, including Ethereum and stablecoins. Some of the stolen assets were bridged to Ethereum, converted into USDC, and later swapped for ETH. In response, Cetus and its partners tracked the hacker’s wallets and offered a $6 million bounty to recover a portion of the stolen funds.

How is Cetus trying to recover the stolen ETH?

Cetus has offered a $6 million bounty in exchange for the return of 20,920 ETH (about $56.3 million) from the attacker. The protocol, along with analytics firm Inca Digital, reached out directly to the hacker and made the offer public. Additionally, Sui validators have “ignored” transactions from addresses linked to the hacker to prevent the movement of the compromised funds. This mix of negotiation and active blocking reflects a hybrid crisis strategy.

Why are people concerned about Sui’s decentralization?

After the exploit, Sui validators collectively decided to block transactions from the hacker’s addresses. While this helped contain the threat, critics argue that such coordinated control challenges the very idea of decentralization. With only 114 validators and a large portion of tokens held by the project’s founders, some experts believe the Sui network operates more like a centralized system. This has ignited fresh debate in the crypto community.

What’s the current status of the stolen funds and token prices?

Cetus has reported that $162 million worth of assets have been successfully paused, limiting the hacker’s ability to move or launder the funds. However, some assets were already converted and may still be in motion. The protocol’s native token, CETUS, saw a 50% price drop following the incident, and other tokens within the Sui ecosystem like LOFI and HIPPO also declined. Recovery efforts are ongoing, and market sentiment remains cautious.

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