SUI Faces Governance Crisis After $220M Hack Exposes Centralization Tensions
A $223 million exploit targeting Cetus Protocol’s liquidity pools has triggered intense governance debates within the sui ecosystem. The attacker drained funds before developers froze contracts, recovering $162 million while $61 million remains compromised.
Sui validators took the unprecedented step of collectively blacklisting hacker-controlled addresses, freezing stolen assets on-chain. This emergency action has split the community, with critics calling it a breach of blockchain immutability principles.
The incident represents Sui’s most severe security challenge since launch, putting its decentralized governance model to the test. Ecosystem partners including the SUI Foundation are coordinating recovery efforts, with a full post-mortem analysis pending.
