The protocol party has urgently suspended the smart contract to control risks and stated that they are fully investigating the matter.
Written by: ChandlerZ, Foresight News
On the evening of May 22, the Sui ecosystem liquidity protocol Cetus Protocol was reported to have experienced a severe security incident. To prevent the situation from worsening, the protocol party has urgently suspended the operation of its smart contracts. According to monitoring by Lookonchain, the Cetus protocol on SUI has suffered a hacker attack, with losses exceeding $260 million. The hacker is converting the stolen funds into USDC and cross-chain transferring to Ethereum to exchange for ETH, with approximately $60 million in USDC already completed in the cross-chain transfer.
Meanwhile, due to the core liquidity pool being drained by the attackers, the prices of a series of tokens in the Sui ecosystem that rely on these liquidity pools for trading have almost all experienced catastrophic declines, with drops generally exceeding 70%, and many even reaching over 90%, such as LBTC and AXOL, which are close to -99%.
Event Progress
Scattered reports began circulating within the cryptocurrency community about Cetus Protocol possibly being under a hacker attack. Early signs indicated that the trading pool of the protocol deployed on the Sui chain was experiencing abnormal fund draining, which quickly raised the alert and unease among market participants.
Almost simultaneously with the news of the attack, the price of Cetus Protocol's native governance token CETUS plummeted sharply. Market data showed that the CETUS token dropped by an astonishing 40% in just two hours, rapidly falling from a pre-attack price level of $0.257 to a low of $0.146. Although there was a slight rebound afterward, it still hovered around $0.17.
As time went on, the severity of the incident became increasingly clear. BWEnews pointed out that the economic losses caused by this security incident targeting Cetus Protocol are expected to exceed $150 million.
Subsequently, on-chain data analysis platform Lookonchain monitored that the losses of the Cetus protocol exceeded $260 million. The hacker is converting the stolen funds into USDC and cross-chain transferring to Ethereum to exchange for ETH, with approximately $60 million in USDC already completed in the cross-chain transfer.
According to Slowmist's Chief Security Information Officer, their team has conducted a preliminary analysis and suspects that the issue may be due to a vulnerability caused by a calculation precision problem.
In the face of the overwhelming negative news, the continuously declining token prices, and widespread panic in the community, the official team of Cetus Protocol released a statement through its official channels confirming that the protocol has indeed detected a security incident and emphasized that "for security reasons, its smart contracts have been temporarily suspended." The team is fully engaged in an emergency investigation of the incident and will release further investigation results and follow-up statements to the public as soon as possible.
Zhao Changpeng also stated:
"We are doing our best to help SUI. The situation is not good. I hope everyone stays safe!"
Foresight News will continue to follow and report on the latest developments regarding the Cetus Protocol security incident.
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