The Sui blockchain community has demonstrated remarkable unity in the face of crisis. When a hacker exploited Cetus, one of the largest DeFi platforms on the network, freezing substantial user funds through manipulation of liquidity pools, the community’s response was swift and decisive.
Within few days of the attack, an emergency governance vote was organized. The results were overwhelmingly clear: validators representing 90.9% of the network’s stake voted in favor of the recovery plan. This level of coordination and consensus in a decentralized network is exceptional, particularly given the high stakes involved.
The Sui Foundation expressed gratitude to the validators and stakers who participated, noting that protocol governance depends on active community participation. The vote concluded early due to the strong support, allowing the recovery process to begin immediately.
Cetus Technical Recovery Strategy
Cetus has outlined a comprehensive eight-step recovery plan that prioritizes security and transparency. The approach begins with a protocol upgrade that will transfer all frozen funds to a multi-signature wallet controlled by three entities: Cetus, security firm OtterSec, and the Sui Foundation. This three-key system ensures no single party can access the funds unilaterally.
The technical work involves upgrading the main contract that manages liquidity pools and adding emergency features to prevent similar exploits. All upgrades will undergo thorough security audits before implementation. The team faces the complex task of unwinding the hacker’s trades and converting assets back to their original forms without disrupting market stability.
Update – Validators representing 90.9% of stake have said “Yes” in the onchain community vote, and the vote has concluded early.
With this result, the impacted funds will be moved to a multi-sig wallet and held in trust until they can be returned to users according to the plan… https://t.co/qG8aPAhD8e pic.twitter.com/WjiSbLWt8n
— Sui (@SuiNetwork) May 29, 2025A separate smart contract dedicated solely to user reimbursements is being developed and will also receive independent security audits. The final steps include updating all connected systems and bringing the platform back online. The entire process is expected to take approximately one week.
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Regardless of the outcome, this incident has already highlighted the importance of community governance in decentralized finance and demonstrated that rapid, coordinated responses to major exploits are possible when the right systems and relationships are in place.
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