Cetus Protocol, a decentralized exchange (DEX) operating on the Sui blockchain, is under scrutiny following reports of a security breach that resulted in over $200 million in losses. On-chain crypto security firm Peckshield noted this via an X post on Thursday, May 22, 2025, amid the ongoing Bitcoin Pizza Day commemoration. The hack resulted in a rapid outflow of assets.
.@CetusProtocol on #SUI has been hacked and resulting in >$200M loss. The hacker has bridged the 60M $USDC to #Ethereum pic.twitter.com/5doIYashQe
— PeckShield Inc. (@peckshield) May 22, 2025
Massive Asset Drainage Raises Alarm
Blockchain analysts observed a sudden surge in transaction volume on Cetus, with the platform processing approximately $2.9 billion on May 22, a sharp increase from the $320 million reported the previous day. This spike is believed to be linked to unauthorized fund movements.
Various assets on Cetus also experienced drastic value declines, with some tokens losing their worth within 24 hours. Notably, tokens like Lombard Staked BTC (LBTC) and AXOLcoin (AXOL) were among the most affected.
Investigations by data analytics firm PeckShield revealed that the suspected attacker transferred significant amounts of funds through a bridge to Ethereum.
Cetus Responds Amid Ongoing Investigation
In response to the incident, the protocol confirmed via its official X (formerly Twitter) account that an issue had been detected and stated that an investigation was underway, as the Sui Network itself was not affected by the hack. Cetus has fixed the problem, and trading is now back online.
🚨Alert Announcement 🚨
There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.
— Cetus🐳 (@CetusProtocol) May 22, 2025
Notably, about $220 million was affected. Of that, $160 million has been frozen and can be recovered and returned to Cetus users. The remaining $60 million is still missing, and the team is working with Sui developers to retrieve it.
However, several blockchain compliance firms have expressed skepticism regarding the bug explanation, noting that funds were being bridged to Ethereum at a rate of $1 million per minute.
Also, Bluefin, the second-largest DEX on Sui, temporarily paused its Spot trading platform to protect users amid the Cetus security breach. At the same time, a significant withdrawal of LDO tokens from the platform raised suspicion, with some speculating about possible insider involvement. While no direct link has been confirmed, the timing has drawn attention.
As the situation develops, users are advised to exercise caution and monitor official channels for updates. The incident underscores the importance of robust security measures within decentralized finance platforms.
