Sui Has Confirmed a Technical Bug in the Cetus Protocol as the Root Cause of Last Week's Security Breach

The Sui network said the flaw in Cetus Protocol's mathematical logic was to blame, not the Move language. While Sui itself remained secure, user confidence and ecosystem stability were shaken.

Last week, a prominent decentralized exchange on the Sui network fell victim to a security breach, resulting in a significant loss of funds. As reported by Chainalysis, the hack on Cetus Protocol led to the theft of crypto assets, later confirmed by Sui to be around $223 million.

However, contrary to initial speculations, the Sui team has now stated that the hack was due to a technical bug in the Cetus Protocol, not a vulnerability in the Sui base protocol or the Move programming language.

Despite the protocol remaining secure, user confidence and ecosystem stability were affected. The report highlights that even the most secure infrastructure cannot prevent bugs in third-party applications or smart contracts.

In response to the incident, the Sui team has decided to allocate $10 million to strengthen the ecosystem’s security posture. This initiative will involve several measures, including engaging independent auditors, developing formal verification tools, and expanding the bug bounty program.

Moreover, the team will be reaching out to developers and security researchers for collaboration. This follows internal discussions on striking a balance between innovation and technical safeguards.

The hack brought to light the potential vulnerabilities and accelerated plans to harden mission-critical applications on the network.

Following the incident, Sui is closely working with its community to implement and finalize the proposed security initiatives.

This incident began with a technical flaw in the Cetus Protocol, which allowed for unauthorized withdrawals. The Cetus team swiftly took action, freezing $162 million of the stolen funds and launching a $6 million bounty to recover the remaining assets and identify the attackers.

In an effort to prevent similar events, the Sui team has decided to allocate $10 million to secure its platform in the future. This initiative will involve engaging independent auditors, developing formal verification tools, and expanding the bug bounty program.

The money will also go toward building a framework for researchers and developers to contribute to the long-term security of the Sui ecosystem.

This move follows internal discussions on how to strike a balance between innovation and expanding technical safeguards. The hack brought to light the potential vulnerabilities and accelerated plans to harden mission-critical applications on the network.

After the incident, Sui is closely working with its community to implement and finalize the above-proposed security initiatives.

This incident is seen as a moment of growth for the Sui network as it matures. The team admitted that every major blockchain encounters a problem during the early adopting period, which is now being tested.

It brought into focus the importance of learning from your mistakes and hardening your coding practices with dApps. With this update, developers all across Sui’s ecosystem are expected to enhance testing and verification procedures. Long-term network resilience will depend on community collaboration.

This incident highlighted how important code reviews, formal verification, and developer education are as Sui continues to grow. The team called on the community to support better practices and avoid future similar deployments.

But it’s too soon to call a win. Open communication and Sui’s strategic investment have already done enough to restore some confidence in its ecosystem.

Currently, while reporting, the SUI token trades at $3.46 after a 2% daily drop. Meanwhile, trading volume was also down, with $907.62 million in the past 24 hours.