Sui Protocol Initiates Proposal To Upgrade Its Protocol For Return Of Stolen Cetus Funds
In Brief
Sui has issued a governance proposal requesting community approval to activate a specific transaction aimed at returning assets stolen from the Cetus protocol, which are currently held in two attacker-controlled addresses.
Layer 1 blockchain platform Sui has issued a governance proposal requesting community approval to activate a specific transaction aimed at returning assets stolen from the Cetus protocol, which are currently held in two attacker-controlled addresses, in accordance with the Cetus Recovery Plan. Voting on the proposal is underway and will remain open until 8:00 PM UTC on June 3rd. So far, 55.4% of validators have cast their votes in favor.
If the proposal is approved, the upcoming Sui network update will introduce a protocol modification allowing a one-time authorization of two specific transactions. These transactions will be pre-programmed with the attacker addresses, the stolen assets, and their intended destination. The system will confirm the voting outcome and, if passed, execute the transfer of the stolen funds from the attacker-controlled addresses to a Cetus multi-signature wallet, jointly managed by Cetus, the Sui Foundation, and OtterSec as signatories.
The voting process is set to remain open for up to seven days. Validators can cast their votes as “Yes,” “No,” or “Abstain,” and once submitted, votes cannot be altered. Voting power is determined by the stake of each validator, with the Sui Foundation’s stake excluded to preserve impartiality. Stakeholders are encouraged to delegate their stakes to validators who reflect their voting preferences.
For the proposal to pass, more than half of the total participating stake (excluding abstentions) must vote either “Yes” or “No,” and the weighted “Yes” votes must exceed the weighted “No” votes. Voting may conclude early, provided at least two days have passed, if the remaining uncast votes cannot influence the final result.
Cetus Proposes Community Vote To Potentially Restore Funds To Users Impacted By $223M Exploit
In a separate statement, Cetus, a decentralized exchange and liquidity infrastructure provider on the Sui network, announced that individuals impacted by the $223 million exploit on May 22nd may be able to recover the full amount of their lost funds through an upcoming community vote. Cetus stated on social media platform X that by utilizing its cash and token reserves, it is prepared to fully reimburse the stolen assets currently held off-chain, contingent on the success of the vote. This effort includes a loan from the Sui Foundation, which enables the possibility of complete recovery for all affected users.
The protocol emphasized that the full recovery depends on the community vote’s outcome and urged the Sui community to support the initiative. While acknowledging the unusual nature of the request, Cetus expressed confidence that this approach is the most appropriate solution for those impacted.
Regardless of the vote result, Cetus committed to initiating recovery actions immediately and pledged to resolve the situation responsibly. The exploit on May 22nd led to a loss of $223 million and caused significant declines in several Sui-based tokens, with Cetus’ own token, CETUS, dropping by 50%.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
