A $260 million hack of Cetus Protocol and Sui Network shook the entire decentralized finance sector. As a result, the teams announced a $6 million bounty for anyone who could return the stolen funds.

The attack was focused on the main DEX and liquidity provider service on the Sui Network. Authorities and security experts are cooperating with the platforms, as both have released emergency measures to handle the issue.

Key-Takeaways:

• Because of a $260 million hack that involved fake tokens, Cetus Protocol and Sui Network issued a $6 million bounty and kept $162 million locked to get the stolen funds back.
• While DeFi tokens lost significant value, a supportive community and continued focus on security demonstrate that more safeguards are needed for DeFi.

The Hack Details and Why the Attack Was Possibl

The culprit used falsified tokens called BULLA to take charge of pricing and the reserve system on Cetus Protocol and Sui Network. They managed to get around important security steps with this trick.

The hacker now has 12.9 million SUI tokens in their wallet address “0xe28b50,” valued at just under $54 million. That shows how large the incident was and how at risk we are.

Tests indicate the attacker boosted the attack liquidity only to confuse LPs, so they could take SUI and USDC out of Cetus Protocol and the Sui Network. By attacking pricing and reserve systems, the exploiter was able to take money out of the smart contract and deposit pointless tokens.

The data suggests that the hacker quickly turned the stolen currency into USDC, before moving about $60 million of USDC to Ethereum to exchange for new ETH. This level of money laundering reveals how carefully prepared the attack on Cetus Protocol and Sui Network was.

Recovery Efforts and the Bounty Offer

After the breach happened, Cetus Protocol and Sui Network took action, offering a $6 million reward to the hacker who disclosed the problem. They must pay back 20,920 ETH ($56 million) and frozen Sui wallet funds to be eligible to keep 2,324 ETH (close to $6 million) as a bounty.

The plan for Cetus Protocol and Sui Network recovery specifies that both rules and timeframes must be followed. Should the stolen assets be returned by the hacker, the teams will abandon any lawsuits.

Still, if any assets are laundered or sent to another platform, Cetus Protocol and Sui Network will initiate legal action.

Cetus managed to freeze about $162 million in affected funds almost immediately, proving that the team responds quickly according to its protocols. The protocol teams up with the Sui Foundation and its leading security partners to find and secure any remaining stolen assets.

After discovering problems, the Cetus Protocol and Sui Network team has suspended work on affected smart contracts while they perform in-depth investigations. As a result, there were no further problems, and a full security review took place across all areas.

The attack caused wild fluctuations in the prices of tokens from Cetus Protocol and Sui Network. After the exploit, SUI fell 15% in only four hours, even though earlier the price had risen when OKX began issuing a wrapped Bitcoin token. There has been a 4.38% drop for the token in the past 24 hours, making its current price $3.83.

When it comes to Sui-based tokens using Cetus Protocol, nearly all assets took massive hits, including LBTC and AXOL. Within just six hours of the attack, the values of LOFI, HIPPO and SQUIRT all dropped more than 80% after the Cetus Protocol and Sui Network were compromised.

The effects continued outside just prices, with liquidity platforms based on Sui stopping specific features reliant on Cetus Protocol and Sui Network services. Haedal has temporarily disabled haeVault because of security worries and will not offer it again until the system is secure.

Even with the dramatic declines, both Cetus Protocol and Sui Network are built on resilience as TVL reaches $2.2 billion and visibility growth sees a 222% increase over the past year.

Social Responses and Industry Assistance

Many members of the crypto community helped Cetus Protocol and Sui Network after the exploit, with significant individuals offering useful resources. Changpeng Zhao, founder of Binance, announced that they are helping SUI, “Not a pleasant situation. I hope you all continue to stay SAFU!”

We are doing what we can to help SUI. Not a pleasant situation. Hope everyone stay SAFU!

— CZ 🔶 BNB (@cz_binance) May 22, 2025

The Cetus Protocol and Sui Network groups working on the exploit have been supported with technical help from blockchain security firms and industry specialists. By working together, the group is showing its efforts to respond quickly to large security problems and keep such events from repeating in other DeFi protocols.

The event has led people to talk more about how to make DeFi safer and the significance of reviewing smart contracts broadly. Experts are investigating the recent hacking incidents on the Cetus Protocol and Sui Network to improve defenses for other similar protocols.

Conclusion

While recovering from the $260 million hack is difficult, Cetus Protocol and Sui Network prove resilient with community support and fast action. Recovery and improved security will guide their growth into the future. As a result, this situation highlights the importance of secure DeFi activity to the industry.