Sui DEX Cetus suspected of being hacked, over $220M drained from liquidity pools

Key Takeaways

• Cetus Protocol on Sui blockchain was targeted by a cyberattack, draining multiple liquidity pools.
• Several liquidity pool tokens on Cetus plunged by up to 80% following the incident.

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Cetus Protocol, a key decentralized exchange and liquidity provider on the Sui network, suffered severe disruption in the early hours of Thursday after over $220 million was drained from its liquidity pools.

Initial reports from users and on-chain data indicate that approximately $11 million worth of SUI was withdrawn from the SUI/USDC liquidity pool on the Cetus Protocol.

Immediately after the incident surfaced, the price of SUI fell sharply by around 7%, dropping to $3.9, according to data from CoinGecko. As of press time, SUI was trading near $3.8.

Meanwhile, numerous liquidity pool tokens on Cetus experienced severe drawdowns, with some plunging by as much as 80% amid the widespread liquidity exodus.

Cetus Protocol’s CETUS token crashed around 33% after the exploit. At the time of writing, the crypto asset was changing hands at around $0.16.

According to Lookonchain, the hacker behind the exploit swapped stolen assets for USDC and bridged them to Ethereum. As of the latest update, the exploiter had spent around $58 million to acquire 21,938 ETH, averaging $2,658 per ETH.

Under investigation

In a statement issued shortly after the incident surfaced, the Cetus team said it had paused its smart contract as a precautionary measure following the detection of an anomaly in the protocol.

According to the team, an investigation is underway, and more details will come as soon as they become available.

Sui confirmed that it is working closely with the Cetus team to assess the scope of the disruption and will provide updates as available.

Following the incident, Sui-based DEXs Bluefin and Momentum announced temporary suspensions of activities, stating they would resume once the ecosystem stabilizes.

This is a developing story. We’ll give an update as we learn more.

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