Sui-Based Cetus Protocol Exploited for $200M+
A major security breach on Sui-based Cetus Protocol triggers panic as attacker moves $60M in USDC to Ethereum.
A catastrophic exploit on Cetus Protocol, a decentralized exchange operating on the Sui blockchain, has led to over $200 million in crypto losses, sending shockwaves through the Sui ecosystem and causing its native token, SUI, to plunge in value.
The incident, first reported by Web3 researcher COMDARE3, is one of the largest decentralized finance (DeFi) breaches in recent memory. The attacker reportedly gained access to all SUI-denominated liquidity pools, prompting a massive selloff and an urgent halt of Cetus’ smart contract operations.
Sui Ecosystem in Freefall as Top Tokens Collapse
Cetus Protocol, which facilitates automated market making on the Sui network, became the epicenter of a dramatic market shake-up. According to DEX Screener, at least 15 tokens lost over 75% of their value within 24 hours, with assets such as Lombard Staked BTC (LBTC) and AXOLcoin (AXOL) nearly wiped out completely.
The exploit drained a broad range of tokens from the protocol. On-chain data revealed the following from the alleged exploiter’s wallet:
- $52 million in SUI
- $20 million in wrapped USDT
- $4.9 million in Haedal Staked SUI (HASUI)
- Dozens of obscure tokens including TOILET (TOILET)
Notably, blockchain analysts from Onchain Lens confirmed the attacker had compromised the protocol’s core pools and quickly began offloading assets. The individual has since moved approximately $60 million in USDC to Ethereum, escalating concerns that the funds will soon be laundered or mixed across networks.
Cetus Team Downplays Scope of Breach
In the wake of the breach, Cetus Protocol’s official X account confirmed that smart contracts were paused to mitigate further damage. However, the project’s tone has attracted criticism. In Discord chats, Cetus representatives described the incident as a “bug,” a statement many observers viewed as minimizing the event’s gravity.
Compliance experts and security researchers have pushed back against this characterization, pointing out the scale of the exploit and its impact on users and token prices.
“The attacker gained control of all SUI-denominated pools,” Onchain Lens noted, emphasizing that the event was far more than a simple vulnerability and amounted to full-scale access and coordinated asset extraction.
SUI Token Takes a Major Hit
Following the breach, SUI, the native token of the Sui blockchain, saw its price plummet, reflecting a sharp drop in investor confidence. The incident raises serious concerns about the resilience and security of DeFi infrastructure on newer Layer-1 chains like Sui.
Although exact figures vary by exchange, SUI’s decline comes as liquidity providers and token holders scramble to secure assets or flee the ecosystem altogether.
Part of a Growing Trend: Q1 2025 Sets Record for Crypto Hacks
The Cetus exploit adds to a staggering trend of security failures in 2025, particularly during the first quarter.
According to blockchain security platform Immunefi, the crypto industry suffered $1.63 billion in losses from 39 separate incidents in Q1 2025, making it the worst quarter in crypto hacking history.
A vast majority of those losses stemmed from just two major breaches:
- Bybit lost $1.46 billion in February.
- Phemex was hacked for $69.1 million in January.
Combined, these two events account for 94% of the quarter’s total losses, and investigators believe they were likely orchestrated by North Korea’s Lazarus Group, a state-sponsored hacking collective linked to past high-profile DeFi and centralized exchange attacks.
Compared to Q1 2024, when hackers stole $348 million, this year’s figures represent a 4.7x increase in financial damage, underlining a rapidly escalating threat to the digital asset ecosystem.
Implications for DeFi and Sui’s Future
The Cetus breach not only affects its immediate users but also casts a shadow over the broader Sui blockchain ecosystem, which has positioned itself as a competitor to Ethereum with high-throughput DeFi capabilities.
The failure highlights persistent security challenges in smart contract design, even among newer protocols, and calls into question whether emerging Layer-1 chains are adequately battle-tested to support large-scale financial applications.
For users and developers within the Sui ecosystem, the incident is a stark reminder of the importance of rigorous audits, permission controls, and rapid-response frameworks when dealing with billions in on-chain liquidity.
Conclusion: A Wake-Up Call for Emerging DeFi Platforms
The $200 million exploit on Cetus Protocol is more than just another headline in a year already marred by crypto thefts—it is a cautionary tale about the fragility of under-secured DeFi protocols in a high-stakes environment.
As attackers continue to exploit vulnerabilities in both centralized and decentralized systems, platforms that fail to prioritize security risk not only financial loss but also existential damage to user trust.
For the Sui blockchain, recovering from this breach will require immediate transparency, remediation efforts, and a clear commitment to better security practices—or risk losing its foothold in an increasingly competitive DeFi landscape.
