{"id":21353,"date":"2025-05-28T14:07:01","date_gmt":"2025-05-28T14:07:01","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2025\/05\/28\/sui-foundation-supports-cetus-loan-for-user-compensation\/"},"modified":"2025-05-28T14:07:01","modified_gmt":"2025-05-28T14:07:01","slug":"sui-foundation-supports-cetus-loan-for-user-compensation","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2025\/05\/28\/sui-foundation-supports-cetus-loan-for-user-compensation\/","title":{"rendered":"Sui Foundation Supports Cetus Loan for User Compensation"},"content":{"rendered":"<p><\/p>\n<div>\n<p><span style=\"font-weight: 400;\">Following a devastating $223 million hack, Cetus Protocol has announced a user comprehensive plan to reimburse affected users, leveraging a loan from the Sui Foundation and its treasury funds, signaling a robust recovery effort within the Sui ecosystem.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cetus_Secures_Loan_from_Sui_Foundation\"\/><b>Cetus Secures Loan from Sui Foundation<\/b><span class=\"ez-toc-section-end\"\/><\/h2>\n<p><span style=\"font-weight: 400;\">On May 22, 2025, Cetus Protocol, the largest decentralized exchange (DEX) and liquidity provider on the Sui blockchain, suffered a massive security breach, resulting in the loss of approximately $223 million in digital assets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The exploit, attributed to a vulnerability in Cetus\u2019s smart contract pricing mechanism, allowed attackers to manipulate liquidity pools using spoof tokens, draining significant funds, including $11 million from the SUI\/USDC pool.\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">Read more: <\/span><a href=\"https:\/\/nftevening.com\/cetus-protocol-hackers-exploited-223m-terrorizing-the-sui-ecosystem\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span style=\"font-weight: 400;\">Cetus Protocol Hackers Exploited $223M, Terrorizing the SUI Ecosystem<\/span><\/a><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">The attack sent shockwaves through the Sui ecosystem, causing a 40% drop in the CETUS token price and a 14% decline in <a href=\"https:\/\/nftevening.com\/recommends\/binance-trade\/\" target=\"_blank\" rel=\"noopener noreferrer\" class=\"inline-coin\" data-id=\"sui\" data-wpel-link=\"internal\"><span class=\"inline-coin__symbol\">SUI<\/span><span class=\"inline-coin__price\"\/><\/a> value, alongside severe disruptions to other Sui-based tokens, which lost nearly all their value.<\/span><\/p>\n<div id=\"attachment_153608\" style=\"width: 1638px\" class=\"wp-caption alignnone\"><noscript><\/noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-153608\" class=\"lazyload wp-image-153608 size-full\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/05\/cetus.png\" alt=\"Cetus Secures Loan from Sui Foundation\" width=\"1628\" height=\"747\"\/><\/p>\n<p id=\"caption-attachment-153608\" class=\"wp-caption-text\">Source: CoinGecko<\/p>\n<\/div>\n<p><span style=\"font-weight: 400;\">In response, Cetus swiftly paused its smart contracts to prevent further losses and collaborated with the Sui Foundation, validators, and other DeFi protocols to freeze $162 million of the stolen funds. Despite these efforts, approximately $61 million was bridged to Ethereum, complicating recovery.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To address user losses, Cetus has secured a loan from the Sui Foundation, ensuring full compensation, a move that has garnered significant attention within the crypto community.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"7-Day_Voting_Process_for_Compensation_Plan\"\/><b>7-Day Voting Process for Compensation Plan<\/b><span class=\"ez-toc-section-end\"\/><\/h2>\n<p><span style=\"font-weight: 400;\">The Cetus user comprehensive plan, which aims to restore user confidence, is subject to a <\/span><a href=\"https:\/\/sui.scan.space\/vote\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\"><span style=\"font-weight: 400;\">community-driven vote<\/span><\/a><span style=\"font-weight: 400;\"> involving Sui validators and token holders through stake delegation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The voting began at 8:00 PM on May 27 and runs until 8:00 PM on June 3, 2025 (UTC). The proposal requires over 50% of staked SUI to participate (excluding Abstain) and a majority of approving votes to pass.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As of now, 37 of the 114 Sui validators have voted, with a 100% approval rate, signaling strong community support.<\/span><\/p>\n<div id=\"attachment_154087\" style=\"width: 1651px\" class=\"wp-caption alignnone\"><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-154087\" class=\"size-full wp-image-154087\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/05\/1-10.jpg\" alt=\"7-Day Voting Process for Compensation Plan\" width=\"1641\" height=\"791\"\/><\/noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-154087\" class=\"lazyload size-full wp-image-154087\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/05\/1-10.jpg\" alt=\"7-Day Voting Process for Compensation Plan\" width=\"1641\" height=\"791\"\/><\/p>\n<p id=\"caption-attachment-154087\" class=\"wp-caption-text\">Source: SuiScan<\/p>\n<\/div>\n<p><span style=\"font-weight: 400;\">The Sui Foundation\u2019s support has been pivotal, with the organization not only providing financial backing but also releasing code to facilitate the on-chain voting process.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This incident has sparked debates about decentralization, as the Sui validators\u2019 ability to freeze funds raised concerns among some community members about centralized control. However, others defended the action as a necessary measure to protect users, citing similar interventions by Ethereum and Solana in past exploits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With $160 million already secured and plans for full reimbursement underway, Cetus\u2019s response could set a precedent for handling DeFi breaches.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The community\u2019s positive response to Cetus Protocol\u2019s democratic approach has driven a 24% surge in the <a href=\"https:\/\/nftevening.com\/recommends\/binance-trade\/\" target=\"_blank\" rel=\"noopener noreferrer\" class=\"inline-coin\" data-id=\"cetus-protocol\" data-wpel-link=\"internal\"><span class=\"inline-coin__symbol\">CETUS<\/span><span class=\"inline-coin__price\"\/><\/a> price over the last 24 hours, with the token now trading at $0.1591.<\/span><\/p>\n<div id=\"attachment_154088\" style=\"width: 1527px\" class=\"wp-caption alignnone\"><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-154088\" class=\"size-full wp-image-154088\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/05\/cetus-1.png\" alt=\"7-Day Voting Process for Compensation Plan\" width=\"1517\" height=\"877\"\/><\/noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-154088\" class=\"lazyload size-full wp-image-154088\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/05\/cetus-1.png\" alt=\"7-Day Voting Process for Compensation Plan\" width=\"1517\" height=\"877\"\/><\/p>\n<p id=\"caption-attachment-154088\" class=\"wp-caption-text\">Source: TradingView<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/nftevening.com\/sui-foundation-supports-cetus-loan-for-user-compensation\/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=sui-foundation-supports-cetus-loan-for-user-compensation\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following a devastating $223 million hack, Cetus Protocol has announced a user comprehensive plan to reimburse affected users, leveraging a loan from the Sui Foundation and its treasury funds, signaling a robust recovery effort within the Sui ecosystem. Cetus Secures Loan from Sui Foundation On May 22, 2025, Cetus Protocol, the largest decentralized exchange (DEX) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[9],"tags":[21],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/nftevening.com\/wp-content\/uploads\/2025\/05\/4-6.jpg","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/21353"}],"collection":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=21353"}],"version-history":[{"count":0,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/21353\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/21354"}],"wp:attachment":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=21353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=21353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=21353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}