SlowMist Uncovers Smart Contract Flaw Behind Cetus Protocol’s $230M Exploit

A critical vulnerability in Cetus Protocol’s smart contract code led to a $230 million exploit on May 22, according to blockchain security firm SlowMist. The decentralized exchange (DEX) operating on sui blockchain saw liquidity pools drained after prices abruptly collapsed.

The flaw originated in a function called ’checked_shlw’ which failed to detect arithmetic overflow in the ’get_delta_a’ calculation module. This coding oversight caused systemic miscalculations of token quantities, allowing attackers to manipulate balances undetected.

SlowMist’s technical analysis reveals how microscopic vulnerabilities can trigger catastrophic failures in DeFi systems. The incident underscores the persistent security challenges facing decentralized finance protocols, particularly those handling nine-figure liquidity pools.