Cetus Protocol, the leading decentralized exchange (DEX) and liquidity provider on the Sui network, has reportedly suffered a major security breach resulting in the loss of approximately $260 million worth of tokens.
According to blockchain analytics firm Lookonchain, the exploit involved unauthorized access to Cetus’s smart contracts, allowing the attacker to drain funds from the platform’s liquidity pools.
This hack marks one of the largest incidents to impact the Sui ecosystem, raising concerns about the security of DeFi projects on newer blockchain networks.
The aftermath of the hack saw the $CETUS token drop over 18% to $0.1681.
Cetus Protocol Hack Creates Market Panic
Cetus Protocol has quickly grown to become a central player in the Sui network’s decentralized finance landscape, offering users seamless trading and liquidity provision with low fees and high speed.
The incident has sent shockwaves through the community, as investors and users now face potential losses and uncertainty around the platform’s future.
While details about the nature of the exploit and the attacker remain unclear, Cetus and Sui developers are likely investigating the breach and working on possible remedies.
The hack underscores the risks associated with emerging blockchain platforms and highlights the need for rigorous security audits and safeguards in decentralized finance protocols.
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Cetus Paused Smart Contracts and is Investigating the $260 Million Hack
The Cetus team has suspended its smart contracts to prevent further damage and is actively investigating the $260 million hack, according to their post on X.
Early findings suggest the attacker exploited vulnerabilities by using spoof tokens, such as BULLA, to manipulate the platform’s price curves and reserve calculations.
This manipulation allowed the hacker to drain a significant amount of funds from the protocol.
The team is working to identify the full extent of the breach and assess potential recovery options, emphasizing their commitment to securing user assets and restoring platform integrity.
Binance’s CZ Pledges Strong Support for Sui Network After Cetus Protocol Hack
Binance’s Changpeng Zhao (CZ) took to X to express strong support for the Sui Network following the recent Cetus Protocol hack.
Highlighting Binance’s dedication to the broader crypto space, CZ emphasized collaboration and resilience during challenging times.
His message aims to reassure users and investors that the crypto world stands behind Sui, working alongside the network to foster stability and continued growth despite recent setbacks.
Hacker Converts Stolen Cetus Tokens Into USDC For Laundering.
The hacker behind the Cetus Protocol breach is actively converting the stolen tokens into USDC, a stablecoin, to facilitate easier movement and laundering of the funds.
Approximately $60 million worth of USDC has already been transferred across blockchain networks, specifically cross-chained to Ethereum.
Once on Ethereum, the attacker plans to swap the USDC for ETH, a more liquid and widely accepted cryptocurrency, enabling further obfuscation of the stolen assets.
This cross-chain activity complicates tracing efforts and underscores the challenges faced by security teams in tracking and recovering stolen crypto in multi-chain ecosystems.
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