Cetus Team Unveils Recovery Plan

The Sui network community approved an emergency update necessary for the recovery of the decentralized exchange Cetus following a breach. Over 90% of validators and stakers supported the decision during the vote.

The DEX team expressed gratitude to participants and announced plans for a complete recovery and relaunch of the project in approximately one week.

Within just 48 hours, the Sui community united to pass a critical on-chain vote — marking a pivotal moment for the entire ecosystem. Cetus extends our deepest gratitude to the >90% of validators and stakers who voted in favor. Regardless of your stance, your participation… https://t.co/UN2DrlDRTw

— Cetus? (@CetusProtocol) May 29, 2025

The relaunch phases include the following steps:

• updating the Sui protocol — network validators will transfer frozen funds to a multisig wallet controlled jointly by Cetus, the auditing firm OtterSec, and the Sui Foundation;
• upgrading the CLMM contract — the completed update for emergency pool recovery is under audit;
• data recovery — the team will calculate liquidity losses in each attacked pool;
• asset conversion — due to the attacker’s actions, assets have changed. Cetus will conduct conversions with minimal market impact;
• compensation contract — currently under development and will be audited;
• product updates — peripheral modules will be adapted to the new CLMM contract;
• relaunch — all protocol functions will resume. LPs will regain access to liquidity, and remaining losses will be covered by the compensation contract.

Cetus assured that they are working with partners for a safe and complete recovery. 

Back on May 22, the DEX team offered the hacker $6 million for the return of 20,920 ETH. If agreed, the project promised not to contact law enforcement or disclose the attacker’s information.

Experts from Dedaub explained the Cetus breach as a vulnerability in the liquidity parameter checks of the automated market maker.