- The Sui Foundation has issued an emergency loan to help decentralized exchange Cetus recover $162 million in frozen assets following a major hack.
- A community vote ending June 3 will determine if the funds can be returned to affected users.
The Sui Foundation has taken swift action to support decentralized exchange Cetus following a major security breach that saw over $220 million in digital assets compromised. As part of an ambitious recovery plan, Cetus has secured an emergency loan from the Sui Foundation and initiated a community governance vote to unlock frozen assets.
The exploit occurred on May 22, and although initial reports placed the losses at $200,000, it was later confirmed that over $220 million was affected. Thanks to quick intervention, $162 million of those assets have been successfully frozen. The focus now is on recovering and redistributing the funds to affected users.
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On May 27, Sui posted on X (formerly Twitter) that Cetus had formally requested a community vote to determine the next steps. If approved, the recovered funds will be moved into a multisig trust account, where they will remain until they can be returned to impacted Cetus users.
“This community vote is a key part of a broader recovery strategy,” Sui stated. “It includes access to Cetus’s Treasury and an emergency loan provided by the Sui Foundation.”
The community’s response has been swift but divided. While many users applauded Sui’s ability to freeze stolen funds and react quickly, others raised concerns over centralization risks, especially in decentralized ecosystems.
As of the latest data from the Sui blockchain explorer, 52.9% of the network has already voted, with 46.7% yet to participate. SUI token holders can influence the outcome by staking their tokens with validators who reflect their preferences.
Cetus has also requested validator support and broader community involvement to ensure a successful outcome. If the vote passes, the platform claims it will be able to “fully cover the stolen assets” and restore confidence in its services.
The final decision on fund recovery is expected by June 3, a pivotal moment for both Cetus and the Sui ecosystem as they work to navigate the aftermath of one of the most significant hacks in recent DeFi histor
