The Cetus protocol, a decentralized exchange (DEX) on the SUI blockchain, was the victim of a major hacking due to a smart contract vulnerability. Now Cetus plans to compensate the affected users.
The Hack
Five days ago, Cetus suffered a major hacking of $223 million. Although the stolen funds were frozen by the Sui validator, the hacker had already bridged about $63 million to Ethereum. Cetus had offered a white hat bounty of $6 million to the hacker to recover the stolen funds, but there was no response. So now the idea is to release the locked funds to provide compensation.
Ready for Compensation
A community vote in the Cetus protocol will determine the release of the locked funds. But the idea has also come up that the result of the voting may not be in its favor, for now, being prepared for such a situation, Cetus has clearly said that whatever the result of the vote, Cetus will definitely give compensation. For this, Cetus has also planned to use its cash and token reserves along with a loan from the Sui Foundation.
Post Hack
After the hack, the prices of SUI and CETUS tokens fell significantly, but after the announcement of the compensation program, their value is increasing again. For the future, Cetus has patched the vulnerability, resumed trading, and started security audits to prevent similar exploits.
