Cetus Protocol, a leading decentralized exchange (DEX) and liquidity provider on the Sui network, has reportedly been hacked, resulting in the loss of around $260 million worth of tokens. The incident, which halted trading and drained liquidity pools, was initially disclosed by crypto analyst Lookonchain.
The exploiter utilized spoof tokens to manipulate price curves and reserve calculations, which enabled them to extract actual assets from the platform. Consequently, Cetus paused its smart contracts for safety and a detailed report is forthcoming, during which its token CETUS dropped 40%.
Key Points:
- Cetus is the primary DEX on the Sui network, experiencing a critical liquidity breach.
- The wallet associated with the attack holds over 12.9 million SUI coins, worth approximately $54 million.
- On-chain analysis indicates the address possesses a net worth exceeding 32.9 million SUI (about $137 million).
- Preliminary investigations reveal that the attacker exploited broken price curves to drain liquidity without meaningful deposits.
“It seems like all CetusProtocol LPs were drained,” indicates a tweet from user sashko🇺🇦. Translation: It seems that all liquidity providers for Cetus were drained.
Following the incident, Binance’s founder CZ reached out to Sui for assistance, highlighting the urgency of the situation as related tokens, including BULLA and MOJO, have seen over 90% depreciation.
