Cetus Protocol, the largest decentralised exchange and liquidity provider on the Sui blockchain, suffered a major security breach on 22 May
Cetus Protocol, the largest decentralised exchange and liquidity provider on the Sui blockchain, suffered a major security breach on 22 May. Preliminary analyses by blockchain-monitoring services and media outlets including Cointelegraph and WuBlockchain indicate that the attacker siphoned about US$11 million worth of SUI tokens from the flagship SUI/USDC pool, triggering a near-total loss of liquidity across the platform.
The exploit rippled through the broader Sui ecosystem. Prices of several Sui-based tokens—including HIPPO, LOFI, SQUIRT, BLUB and SUIMON—collapsed by roughly 75% to 80% as their pools were emptied, while Sui-denominated USDC briefly lost its dollar peg. The native SUI token fell around 5% on exchanges whose liquidity is not directly tied to Cetus.
On-chain data show the attacker quickly routed the stolen assets through bridge protocols, moving large amounts of USDC to Ethereum and converting part of the haul into Ether. Some analytics firms have tracked wallets linked to the exploit holding more than US$200 million in assets, although those figures include sharply devalued tokens; the principal confirmed loss remains the US$11 million initially drained from Cetus.
Cetus said it is investigating the incident with external security specialists and coordinating with other Sui projects to contain the fallout. Early forensic work points to a flash-loan-enabled oracle manipulation, but the team has yet to publish a full post-mortem or outline plans for restoring liquidity and compensating users.
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