- Hacker bounty announced following $223M exploit at Cetus Protocol.
- Sui Network partnerships aid recovery.
- Market reactions include significant TVL drop and price slumps.
Cetus Protocol announced a bounty for the hacker after a $223 million exploit targeted its decentralized exchange on the Sui Network.
The breach on Cetus Protocol, the largest DEX on Sui Network, highlights vulnerabilities in DeFi ecosystems, affecting investor confidence and market stability.
The exploit involved oracle manipulation and flawed liquidity calculations, leading to substantial losses of SUI and USDC. The Cetus team has suspended all smart contracts as they investigate. Recovery efforts include collaboration with the Sui Foundation and Binance’s support. Approximately $162 million in assets have been successfully frozen, with ongoing efforts to recover the remaining funds.
The attack has caused a sell-off in affected tokens, including CETUS and SUI, leading to steep declines in total value locked (TVL). “We are conducting a comprehensive investigation into this incident and have suspended all contracts for now. We’re working with partners for fund recovery and system reviews.” — Cetus Team, Official Communication, Cetus Protocol
Investors and projects within the Sui Network are expressing concerns over systemic risks. The market response emphasizes the need for robust security measures within DeFi protocols to protect against sophisticated exploits.
Insights suggest potential regulatory pressures and the impetus for evolving technological safeguards. Historical precedents from similar incidents underscore the importance of timely vulnerability assessment and ongoing collaboration with cybersecurity experts.
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