Key Takeaways:
- Cetus confirmed $162M of the $220M stolen in a May 22 exploit has been frozen, with recovery efforts ongoing in coordination with the Sui Foundation.
- The breach stemmed from a smart contract vulnerability and is part of a broader trend of Web3 platform attacks in early 2025.
- Community concerns emerged over decentralization after validators blocked transactions from flagged addresses.
On May 22, 2025, Cetus, a decentralized exchange (DEX) on the Sui blockchain, experienced a major security breach, resulting in the theft of over $220 million due to a smart contract vulnerability.
Of this amount, $162 million has been frozen through joint efforts with the Sui Foundation and network validators.
SUI froze $160M from the Cetus hacker, on-chain, out of over $220M. The $60M gap was bridged to ETH.
— Duo Nine ⚡ YCC (@DU09BTC) May 22, 2025
While this is good in this case, this shows SUI network can freeze your funds on demand.
Decentralization is just marketing outside of BTC/ETH. pic.twitter.com/IO9b4h3NUq
Many validators are now blocking transactions from the wallets linked to the stolen assets as Cetus continues recovery efforts.
Approximately $63 million was bridged to Ethereum, with about $53 million laundered via a wallet ending in “AF16”.
The hack is part of a growing trend of cyberattacks targeting crypto and Web3 platforms in early 2025, sparking renewed calls for stronger internal security and concerns about regulatory oversight.
The community response has been mixed—some praised the swift action, while others questioned the decentralization of the Sui network.
The incident remains ongoing as efforts to trace and recover the remaining funds continue.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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