- Sui Network has launched a $10 million security initiative following the Cetus hack, focusing on audits, bug bounties, and developer tools.
- Despite a sharp price drop, on-chain metrics show early signs of recovery and renewed user trust.
In the wake of a devastating exploit on the Cetus Protocol, Sui Network [SUI] has launched a bold $10 million security initiative aimed at reinforcing its blockchain ecosystem. The move follows a $223 million hack that shook user confidence and reignited debates about decentralization and blockchain governance.
The newly announced fund will be channeled into smart contract audits, incentivized bug bounty programs, and improved tooling for developers. In a statement, the Sui team clarified that the breach originated from a flaw in Cetus’s custom math library — not the Sui blockchain or its Move programming language. Still, the incident underscored the ripple effects third-party vulnerabilities can have on an entire network.
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“We acknowledge the impact this had on our broader ecosystem and are taking steps to foster shared accountability,” said the foundation, emphasizing that fund deployment will be community-driven. This collaborative approach is designed to enhance resilience and protect future decentralized applications built on Sui.
However, not all responses to the event have been positive. A proposed on-chain vote to return frozen funds to Cetus sparked comparisons to Ethereum’s controversial 2016 DAO rollback. While the Sui Foundation maintained a neutral stance, critics pointed to validator influence as a threat to decentralization ideals. This has once again placed blockchain governance under the microscope.
Meanwhile, a combined $11 million bounty — $6 million from Cetus and $5 million from the Sui Foundation — has been offered for information leading to the attacker’s identification.
Despite initial market panic, SUI’s price has stabilized between $3.40 and $3.60 after a sharp 17.5% drop. On-chain data hints at a cautious recovery: the Relative Strength Index (RSI) has returned to neutral, and the On-Balance Volume (OBV) shows signs of accumulation. DeFiLlama data also reveals a gradual uptick in Total Value Locked (TVL), suggesting a return of user trust.
While DEX volumes and application revenues remain below pre-hack levels, the security overhaul marks a turning point. If Sui can deliver on its promises, it may not just bounce back — it could emerge stronger than before.
