Cetus Protocol, the leading decentralized exchange (DEX) on the Sui blockchain, has officially resumed operations after a major security incident last week that led to a reported $22.3 million exploit. The protocol, which had temporarily suspended services following the breach, has now relaunched with upgraded security features and a renewed commitment to transparency.
The attack, discovered on June 1, was the result of a vulnerability in an external protocol that affected Cetus’ liquidity pools. According to initial investigations, the exploit allowed attackers to manipulate token prices and drain funds from the protocol. Cetus quickly halted operations to contain the damage, freeze affected smart contracts, and begin a comprehensive investigation.
Read more: Cetus Protocol Hackers Exploited $223M, Terrorizing the SUI Ecosystem
Restart Plan and Compensation Framework
Cetus’ relaunch follows the implementation of multiple new security protocols, including real-time monitoring systems, enhanced oracle protections, and external smart contract audits. The project also announced a compensation plan for affected users, which will be rolled out in phases. Details include restoring 80% of lost funds through insurance reserves and treasury allocations, with the remaining portion covered through future protocol revenue.
To support this recovery, the Cetus community has approved an emergency governance proposal enabling temporary reallocation of protocol fees and incentives toward restitution efforts. According to the proposal, 30% of trading fees will now be redirected to a user recovery fund.
Despite the severity of the attack, community sentiment around Cetus remains cautiously optimistic. CETUS, the protocol’s native token, saw a modest rebound in trading volumes post-relaunch. Meanwhile, total value locked (TVL) on the platform has started to recover gradually, though it remains below pre-attack levels.
The relaunch is seen by many as a critical test for both Cetus and the broader Sui ecosystem, which has sought to position itself as a secure and scalable home for next-generation DeFi applications.
CETUS IS BACK!
🌊🌊🌊🐳 pic.twitter.com/tyQ50VkEeg— Cetus🐳 (@CetusProtocol) June 8, 2025
Security in the Spotlight
The Cetus incident has reignited industry-wide conversations around security standards in DeFi. While the attack exploited a third-party vulnerability, the cascading effects highlighted the interconnected risks inherent in on-chain finance.
As part of its recovery roadmap, Cetus is also collaborating with other protocols and infrastructure providers on Sui to enhance cross-platform threat detection and response coordination. “This isn’t just about Cetus—it’s about setting a new security benchmark for the entire ecosystem,” the team emphasized.
With operations now restored and a proactive security posture in place, Cetus aims to turn the page on a turbulent chapter and rebuild user trust in the months ahead.
