Key Highlights:
- A hacker drained over $223 million from the Cetus Protocol, sparking panic across the Sui network.
- Memecoins like Lofi, Sudeng, and Squirtle crashed by 76%, 80%, and 97% within just an hour.
- Binance pledged to help recover losses and stabilize the network.
What Happened?
A hacker exploited a smart contract vulnerability in Cetus using fake tokens to manipulate price data and reserves. This allowed them to extract real assets from multiple liquidity pools, including the SUI/USDC pool.
- The hack triggered massive sell-offs.
- The Cetus token itself plunged 53%, and 46 tokens on the Sui network saw double-digit losses within 24 hours, according to DEX Screener.
Part of the Funds Frozen
The Cetus team acted quickly to:
- Freeze $162 million of the stolen funds.
- Lock the smart contract to prevent further losses.
- Collaborate with the Sui Foundation and ecosystem partners to recover the remaining funds.
A full incident report is expected soon.
Binance Steps In to Help SUI
Binance’s co-founder stated on social media:
We’re doing everything we can to help SUI.
According to experts, this could include:
- Technical assistance,
- Resource support,
- Or even financial aid via Binance’s SAFU fund.
Circle Under Fire for Slow Response
Industry experts criticized Circle for its slow reaction in freezing stolen funds, both in this case and in previous attacks (such as the Bybit hack).
Deddy Lavid, CEO of Cyvers, warned:
Waiting for a post-mortem after the attack is just as dangerous as doing nothing. The response must be real-time.
One of the Largest Recent Crypto Hacks
This breach ranks among the most significant crypto thefts in recent months, alongside:
- The $1.5 billion Bybit hack in February
- The insider attack on Coinbase with potential losses up to $400 million
Conclusion:
The attack on Cetus highlights how vulnerable DeFi protocols can be, especially when smart contracts aren’t protected against token manipulation. While $162M has already been frozen, the incident led to a brutal crash in Sui token prices, with memecoins losing nearly all their value in just an hour. Binance is taking a leadership role in stabilizing the ecosystem, while Circle and other institutions face pressure to respond faster and more responsibly in future incidents.
The lesson is clear: in crypto, security is not about reaction — it’s about prevention and speed.
Frequently Asked Questions
Find answers to the most common questions below.
A vulnerability in the smart contract was exploited using fake tokens to manipulate reserve data, allowing the hacker to extract real crypto assets.
Approximately $223 million was drained, although $162 million of that has since been frozen.
The prices of several Sui memecoins crashed by over 70% in an hour. The Cetus token dropped by 53%.
Binance is offering technical and possibly financial support, potentially through its SAFU fund, to assist the SUI ecosystem.
Industry experts have pointed out Circle's slow reaction to similar hacks, including delays in freezing funds during past incidents like the Bybit breach.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
