Sui-based Cetus Protocol Relaunched on June 8 After $230 Million Hack, Focusing on Securing Liquidity Pools

# Sui-based Cetus Protocol Relaunched on June 8 After $230 Million Hack, Focusing on Securing Liquidity Pools

Sui-based Cetus Protocol relaunched on June 8 after suffering a major hack that targeted its liquidity pools and resulted in a loss of $230 million. **The relaunch shows the team's commitment to restoring trust and improving security measures for users like you.**  

If you use or follow decentralized finance platforms, this incident highlights the risks that exist and how projects respond. Understanding what happened with Cetus Protocol can help you make better decisions about where to keep your assets.  

The updates after the relaunch aim to prevent similar attacks and bring more stability to the Sui ecosystem. Staying informed on these changes is important for anyone involved in DeFi or blockchain on Sui.  

 

Key Takeways

- Cetus Protocol restarted after a significant liquidity pool hack.  

- The team focused on boosting security to protect users.  

- The relaunch impacts the wider Sui blockchain ecosystem.

Overview of Cetus Protocol:

Cetus Protocol focuses on decentralized trading and liquidity management. It combines automated market-making with unique tools for liquidity providers and traders.

Key Features and Innovations:

Cetus offers an automated market maker (AMM) designed to optimize trading efficiency. It uses dynamic fees that adjust based on market conditions to reduce slippage and improve user experience.

Liquidity providers benefit from flexible pool management. You can add or remove liquidity with minimal impact on the market price. Cetus also supports concentrated liquidity, letting you allocate funds to specific price ranges for better returns.

The protocol emphasizes low gas fees and fast transaction times. It integrates built-in protections against front-running and sandwich attacks, making trades safer.

Role of Sui Blockchain:

Cetus is built on the Sui blockchain, which provides high throughput and low latency. Sui’s parallel processing lets the protocol handle many transactions at once without delays.

The blockchain’s Move programming language enhances security and reliability. This reduces bugs and vulnerabilities in smart contracts, helping protect your funds.

Sui’s infrastructure supports efficient cross-chain communication. Cetus can connect with other networks, expanding trading options and liquidity sources without sacrificing speed or security.

The $230 Million Hack Incident:

You need to understand when and how the attack happened, which parts of the protocol were hit, and what weak spots the hackers used. This will give you a clear picture of the incident and its impact on Cetus Protocol’s liquidity pools.

Timeline of the Attack

The hack started on June 2, 2025, when the attacker gained unauthorized access to Cetus Protocol’s smart contracts. Within minutes, they began draining funds from several liquidity pools. By June 3, the attacker had already stolen most of the $230 million in assets.

Security teams detected unusual activity hours later but could not block the transfers immediately. It took until June 5 to freeze affected contracts and prevent further losses. The protocol’s developers then began investigating the breach and preparing the relaunch.

Impacted Liquidity Pools:

The attacker specifically targeted the largest and most active liquidity pools on Cetus Protocol. These included pools for SUI/USDT, SUI/ETH, and stablecoin pairs.

Each pool lost between $50 million to $90 million in crypto assets, with the SUI/USDT pool suffering the biggest hit. The damage caused major liquidity shortages and disrupted trading on the platform. Users who had stakes in these pools saw their funds affected directly by the hack.

Vulnerabilities Exploited:

Hackers exploited a flaw in the protocol’s smart contract authorization system. This allowed them to bypass security checks and execute unauthorized withdrawals.

Specifically, the issue was with how permissions were managed in multi-signature wallets and contract upgrade processes. The attacker manipulated these permissions to gain control of the liquidity pools.

This vulnerability had gone unnoticed during earlier audits, highlighting gaps in the protocol’s security design. The Cetus team has since patched this weakness in the relaunch version.

Relaunch of Cetus Protocol on June 8, 2025:

Cetus Protocol restarted its operations after thorough changes aimed at improving safety and regaining trust. You will find that the upgrade focused on technical security measures, how the community reacted, and the steps taken to recover stolen assets.

Security Enhancements:

The relaunch came with strong security updates. Developers fixed the bug that allowed hackers to drain $230 million from liquidity pools. The team added extra checks to the smart contracts to prevent similar exploits. 

New multi-signature wallets were introduced to control large fund movements. This means no single person can move assets alone. The protocol also implemented real-time monitoring tools to detect unusual activity quickly.

These changes make the system harder to attack. Your funds should now be better protected against hackers trying to exploit the same weaknesses.

 Community Response:

Users and investors showed mixed feelings when the protocol relaunched. Some were cautious because of the large hack and waited to see if the fixes worked. Others expressed support due to the transparency from the Cetus team during the outage.

The protocol hosted multiple online sessions to answer questions and explain updates. Your concerns about safety and future risks were addressed directly. Social channels showed a slow return of trust but no rush to deposit large amounts immediately.

The community values the open communication and looks for continued proof that security is strong before fully trusting Cetus again.

Recovery of Funds:

The Cetus team worked with blockchain analytics firms to trace the stolen funds. Some assets were frozen or recovered through cooperation with exchanges. By June 18, around 40% of the $230 million stolen had been recovered or secured.

The protocol set up a compensation plan for affected liquidity providers. You may be able to claim partial reimbursement depending on your losses and proof of holdings before the attack.

Further asset recovery efforts are ongoing. You should stay updated on announcements for any new developments about your funds.

Security Strategies Post-Relaunch:

The Cetus Protocol now uses specific steps to protect your assets better. You will find new tools that focus on controlling risks and regular checks to catch problems .

Advanced Risk Management:

You can expect tighter controls on how liquidity pools operate. Cetus has added automatic limits on transaction sizes and withdrawal amounts. This helps stop large, suspicious movements that could threaten your funds.

They also use real-time monitoring tools. These tools watch for unusual activity, like sudden big trades or spikes in network traffic. When triggered, the system can pause certain actions to prevent losses.

Additionally, protocols now separate liquidity into smaller, isolated pools. This limits damage if one pool is attacked. Your funds won’t be exposed to total loss because of a problem in just one area.

Ongoing Security Audits:

Cetus works with top security firms to review its code frequently. These audits happen both before and after updates. That way, you get protection against new threats as the system evolves.

You should know that audit reports are made public. This transparency lets you see how well the team handles security concerns. It also lets independent experts verify the safety of the platform.

Besides formal audits, Cetus runs continuous automated scans. These scans look for bugs or vulnerabilities 24/7. If issues appear, the team acts quickly to patch them before attackers can exploit anything.

Implications for Sui Ecosystem:

The Cetus Protocol hack and relaunch have clear effects on how you might view Sui’s DeFi projects and future developments. These events influence both trust in existing platforms and the direction developers take within the Sui ecosystem.

DeFi Project Trust:

You should be cautious when dealing with Sui-based DeFi projects after the $230 million hack. Such a large security breach raises concerns about the safety of your funds in liquidity pools.

The incident shows gaps in security that other projects on Sui might also face. Some users may hesitate to use Sui DeFi platforms until stronger protections are in place.

At the same time, the quick relaunch of Cetus Protocol demonstrates efforts to fix vulnerabilities. This could help restore some user confidence if the team proves their fixes work.

**Key points to remember:**

- Large hack shakes user trust  

- Security improvements are critical  

- Relaunch aims to regain confidence  

Sui-Based Protocol Development:

You can expect developers to put more focus on security after Cetus’s hack. Protocols built on Sui may adopt stricter audit processes to avoid similar losses.

The attack highlights the need for better code review, testing, and monitoring. This could slow down new launches but improve overall quality.

Developers may also build new tools or standards to protect liquidity pools and user assets on Sui.

Important areas for future work include:

- Enhanced smart contract security  

- Real-time risk detection  

- Transparent reporting of vulnerabilities  

Your experience with Sui protocols will likely change as developers strengthen defenses and learn from this event.

Future Outlook for Cetus Protocol:

You can expect the Cetus Protocol team to focus heavily on security improvements. After the $230 million hack, they have a strong incentive to make the platform safer for users.

The relaunch on June 8 shows a clear step to regain trust. The team likely fixed vulnerabilities in the liquidity pools and added new safeguards to prevent future breaches.

You should watch for updates on audits and partnerships. Independent security reviews will be key to proving the platform’s resilience.

The protocol may also introduce new features to attract liquidity providers and traders. These could include better rewards or tools that make trading easier and safer.

Here is a quick look at priorities ahead:

| Priority               | Description                                  |

|-----------------------|----------------------------------------------|

| Security              | Enhanced audits and protection measures     |

| User Trust            | Transparent communication and updates       |

| Feature Development   | Launching new tools and incentives           |

| Community Engagement  | Building strong support and feedback loops  |

Your role as a user is to stay informed and cautious. Keep an eye on official announcements and avoid risky positions until you feel confident in the platform’s security changes.