Sui Community Unlocks $162M in Frozen Tokens Post-Cetus Hack—Because Nothing Says ’Decentralized’ Like a Good Old Bailout

Sui’s governance just greenlit the release of $162 million in tokens frozen after the Cetus exploit—proving once again that crypto’s ’code is law’ mantra bends faster than a yield farmer’s ROI.

The move sparks debate: Is this responsible crisis management or a slippery slope toward centralized intervention? Meanwhile, bagholders cheer while purists rage into their encrypted group chats.

Funny how nine-figure token freezes get resolved faster than your average DeFi insurance claim.

Cetus hack victims to be reimbursed fully

The approved transaction instructs validators to transfer the frozen tokens to a multi-signature wallet controlled by Cetus, security auditor OtterSec, and the SUI Foundation. 

The foundationand said the funds will remain in trust until Cetus executes its repayment plan. “Protocol governance is only possible through your active participation,” the foundation told stakers and node operators, crediting them for concluding the vote swiftly.

The decision resolves a key uncertainty that followed, which drained an estimated $223 million in liquidity. 

Attackers bridged roughly $61 million to ethereum before validators halted the address, leaving $162 million stranded on Sui. 

Cetus told users on May 27 that it couldthrough its reserves and a short-term loan from the foundation, but it needed the community’s consent to unlock the frozen balance.

Roadmap for restitution and restart

Cetus outlined an eight-step recovery schedule, targeting a complete relaunch within one week. Validators will first execute the protocol upgrade, which transfers the locked assets into the tri-party wallet. 

Engineers have already completed an emergency update to the concentrated-liquidity market-maker contract and sent it for audit.

The team will then restore pool data, calculate individual liquidity deficits, and convert the retrieved tokens back to their original composition. 

Because attackers executed extensive swaps during the exploit, Cetus plans to use “minimal-impact strategies” to avoid further slippage while rebalancing pools.

Developers are creating a compensation contract that will distribute any unrecovered amounts once the auditors complete their review. 

Cetus is committed to transparent progress reports during the recovery week and stated that staff are “fully mobilized” to meet the timeline. 

Funds will be transferred to the multi-sig wallet once the validators finalize the upgrade, clearing the way for Cetus to reimburse users and bring its exchange back online.