Cetus Protocol, the leading decentralized exchange (DEX) and liquidity provider on the SUI network, has experienced a $260 million exploit. The event triggered a sharp 15% decline in the SUI token, which dropped from its earlier high of $3.81 to a low of $3.65 within hours.
According to blockchain data and analysis, the attacker exploited vulnerabilities in the protocol’s liquidity mechanisms. The Cetus team has paused the platform’s smart contracts to prevent further losses.
SUI Network’s Cetus DEX Hit With $260M Exploit
Blockchain tracker Lookonchain identified the wallet responsible for the attack as “0xe28b50.” The wallet reportedly holds over 12.9 million SUI, valued at approximately $54 million. The hacker converted the stolen assets into USDC, then transferred $60 million to Ethereum and exchanged it for ETH.
Cetus(@CetusProtocol) on #SUI was hacked and lost more than $260M!
The hacker is converting the stolen funds into $USDC and cross-chaining to #Ethereum to exchange for $ETH, with ~60M $USDC already cross-chained.https://t.co/b0uGu8icXrhttps://t.co/0BpKSaygmr pic.twitter.com/txfxLoImOd
— Lookonchain (@lookonchain) May 22, 2025
Preliminary investigations revealed that fake tokens, such as BULLA, were used to manipulate price curves and internal liquidity positions. This allowed the attacker to drain real assets from the pool. The attack method involved minimal liquidity input, which distorted internal reserves.
The Cetus development team responded quickly by suspending contract operations and launching a full investigation. “The Cetus team has our active support in this ongoing investigation,” the SUI development team posted on the social media platform X.
Binance Founder Responds as SUI Price Drops 15%
Binance founder Changpeng Zhao reacted to the incident on X, stating, “We are doing what we can to help SUI.” He acknowledged the seriousness of the hack and offered assistance in recovery efforts. Zhao’s post followed growing concerns across the crypto community about the security of decentralized platforms.
We are doing what we can to help SUI. Not a pleasant situation. Hope everyone stay SAFU!
— CZ 🔶 BNB (@cz_binance) May 22, 2025
The SUI token’s price fell more than 15% after the incident. At the time of writing, the token is trading near $3.65, down from its daily high. According to TradingView, SUI’s increase earlier stemmed from OKX introducing xBTC, a Bitcoin asset wrapped in tokens.
The problems raised by the hack brought back many of the losses. It only took four hours for the token to lose 10% of its value over a single day. Many in the community noticed a panic to withdraw funds and a drop in how much investors trust digital assets after the incident.
Fake Tokens and Liquidity Manipulation Behind the Attack
Someone faked assets to confuse the way the Cetus liquidity pools are managed. The attack gained traction because records of token legitimacy were not checked before they were included in the price calculations. Immediately after that, the attacker took advantage of the new reserves and drained SUI and USDC from the system.
Cetus Protocol halted the contracts involved to stop the items from being taken from people’s wallets. They affirmed that the contracts are not accessible during the ongoing examination. Blockchain experts say that unless strict verification is applied, other platforms could share the same threats.
Lookonchain confirmed that the attacker continued to transfer funds across chains. The funds moved from SUI to Ethereum through USDC conversions. Reports show the attacker now holds large amounts of ETH.
Community Awaits Resolution Amid Security Concerns
The Cetus team has yet to announce any recovery plan for the stolen funds. Both Binance and the SUI Foundation seem to be backing engagement between exchanges and regulators. Even though no exchanges have stopped the attacker’s funds, teams could eventually spot the assets to seize them.
Token fluctuations have not passed the SUI community by and members are on high alert. Updated news is carefully studied by investors and developers in Cetus Protocol and the main SUI group.
This shows that there are still serious risks in DeFi networks centered around the safety of liquidity pools. The crypto industry is asking platforms to enhance their token verification and price oracle safety to avoid future incidents.
