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.