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Key Highlights:
- Cetus Protocol hacked for over $260M; smart contracts paused as investigation begins.
- Attacker swapped $58.3M USDC for 21,938 ETH at $2,658 and bridged funds to Ethereum.
- SUI ecosystem tokens drop to 77% as trader activity and security concerns increase.
Cetus Protocol, a decentralized exchange (DEX) on the Sui blockchain, had suffered a significant exploit. The breach could result in losses exceeding $260 Million.
On May 22, 2025, the Cetus team confirmed a critical issue and stopped its smart contract “temporarily for safety.” The project’s pinned post on X says it is investigating.
According to Lookonchain data, the attacker has taken over several liquidity pools on the Cetus Protocol. The attacker exploited multiple SUI-denominated pools, draining significant assets. They then moved large sums across different blockchain networks.
Early communications called the issue a “bug,” but blockchain tracking firms disagree. They classify the incident as a hack based on wallet behavior.
Hacker Targets Cetus Protocol, Moves $60M Across Blockchains
The hacker spent $58.3 Million in USDC to buy 21,938 ETH at an average of $2,658 per Lookonchain’s report. These purchases have been made using platforms such as CoW Protocol, ParaSwap, and Mayan Finance.
Most of the funds were cross-channelled from the Sui network to Ethereum. The exploiter swiftly transferred the assets, making it harder to track. They also exchanged tokens across several decentralized platforms to obscure the trail further.
Almost $60 Million in USDC has already been transferred to Ethereum. A security breach hit the Cetus Protocol. The attacker gained control of all SUI-based liquidity pools.
They then began moving assets across various blockchain networks. Onchain Lens reported the incident.
SUI Token and Related Assets React to Cetus Protocol Breach
After the exploit, several tokens related to the Sui ecosystem plummeted. DEX Screener data shows that specific tokens suffered severe losses. Some dropped over 75% in just one day.
Many pairs saw trading volumes collapse, and assets like BLUB, SUIMON, and SHRO were down between 71% and 77%.
SCA and TARDI saw declines of 44% and 41%, respectively. Meanwhile, Toilet Token experienced a sharper drop of over 52%.
USDC/SUI was less affected and was the highest volume pair at $52.4 million. USDC traded around $0.003595 when writing, and most Sui tokens were in the red across all timeframes.
Volatility was also seen on Sui itself. The token was trading between $3.77 and $4.19 on May 22. At the time of writing, the price was $3.90 with a 3.57% drop on the day.
Moreover, analysing the SUI/USD pair on the 4-hour chart suggested a bearish condition was building. The token couldn’t break through resistance at $4.22 and started declining.
It moved down to the ascending trendline. This showed slowing momentum amid ongoing developments related to the Cetus Protocol.
If the current slide continues, the market could find interest around the $3.60 level. The overall chart looks neutral according to RSI, yet the MACD displayed a bearish crossover. This means there’s less buying interest right now.
Whales and Traders React While Security Concerns Grow
A top wallet linked to the Sui network holds over $157 Million in digital assets. It includes 12.9 million SUI, valued at more than $54 Million.
The wallet also contains over $41 Million in haSUI, a staked version of SUI. Additionally, it holds millions in USDT, sBUSD, and CETUS. Retailers reacted to falling prices, and some traders went long.
A well-known crypto trader, James Wynn, opened a 10x leveraged long position on SUI at $4.01. According to Lookonchain, he’s currently sitting on an unrealized gain of over $257,000.
The Cetus Protocol team has not said when it expects to finish its investigation. However, the scale and speed of fund movements continue to be questioned.
New details are emerging, and market participants and analysts are urging caution. The event has brought smart contract security and cross-chain fund movement in high-risk environments into the spotlight.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
