SUI Ecosystem Shaken as Hacker Drains Cetus DEX Liquidity — Can It Recover?

The SUI blockchain has been hit with a devastating attack that shook its entire ecosystem. Hackers successfully targeted Cetus Protocol, the largest trading platform and liquidity hub on SUI, stealing over $260 million in what’s already being called one of the biggest DeFi hacks of 2025.

The attackers exploited system vulnerabilities by manipulating price feeds and using fake tokens to drain liquidity pools. They made off with about 12.9 million SUI tokens worth around $54 million, plus $60 million in USDC. The stolen USDC has already been moved to Ethereum and converted to ETH, making recovery nearly impossible.

The impact was immediate and brutal. Trading on Cetus ground to a halt as liquidity pools were drained. Token prices across the SUI ecosystem crashed 70-90%, with some becoming practically worthless. Even USDC traded for pennies during the chaos.

While SUI price remained stable on major exchanges like Binance, the decentralized ecosystem was in complete turmoil. Users scrambled to exit, and confidence plummeted. The Cetus team quickly shut down smart contracts to prevent further damage and launched an investigation, though no concrete recovery plan has been announced.

Cardzz explained on X that the security breach on the SUI blockchain where hackers targeted Cetus, which serves as the main decentralized exchange and liquidity provider on the network.

The Attack That Shook SUI Ecosystem

The hack exposed critical vulnerabilities in SUI token‘s DeFi infrastructure. The attacker manipulated an oracle bug alongside fake tokens to deceive liquidity pool mechanisms, allowing them to drain massive value before anyone could react.

Cetus Protocol, as SUI’s DeFi backbone, saw operations completely frozen. The ripple effects spread throughout the network, with connected protocols suffering massive devaluations. The methodical approach to moving funds off-chain and converting to ETH suggests this was a calculated assault, not an opportunistic strike.

This attack highlighted fundamental weaknesses in the ecosystem’s security architecture, raising concerns about similar vulnerabilities existing elsewhere in the SUI DeFi landscape.

Can SUI Bounce Back From This Disaster?

Despite the devastating attack, SUI’s recovery isn’t impossible, though it won’t be easy. The blockchain’s future depends on how effectively the team addresses the underlying security issues that enabled this hack.

There are encouraging signs for potential recovery. The Cetus team‘s immediate response to pause contracts and investigate shows they’re taking the crisis seriously. Support from major industry figures has also emerged, with Binance CEO Changpeng Zhao publicly offering assistance.

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The most critical factor will be fixing the oracle bug that enabled this attack. Without demonstrating they can resolve these vulnerabilities, convincing users to return will be nearly impossible.

However, rebuilding trust will take considerable time. Users who witnessed this $260 million hack will naturally be more cautious about re-engaging with SUI DeFi ecosystem. The project must prove they’ve implemented comprehensive security measures to prevent similar attacks.

The cryptocurrency community’s continued support will play a significant role in determining SUI’s fate. If major exchanges and institutional players maintain confidence, it could provide the foundation for recovery. But if support wavers, the path back becomes much more challenging.

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The information provided on Web3parrot.com is for general informational purposes only and are opinions of the expert writers. They are not intended as financial, investment, or trading advice. Please do your own research and consult with a licensed financial advisor before making any financial decisions.

Author

  • Ayomide is a crypto, blockchain and finance writer with with four years of experience. She enjoys exploring ideas and sharing insights on a variety of topics within the web3 niche. Writing is not just a profession for Ayomide; it's a passion.

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