Cetus Protocol Exploit Highlights Persistent DeFi Security Flaws
The Cetus Protocol hack ranks among the largest decentralized finance exploits to date, exposing systemic vulnerabilities in smart contract auditing processes. Attackers drained liquidity pools by exploiting a critical overflow flaw in the protocol’s automated market Maker logic—a vulnerability first identified in a 2022 Ottersec audit but left unpatched.
Blockchain security firm Dedaub’s post-mortem reveals the attack Leveraged miswritten conditions for handling large numerical inputs. By manipulating most significant bit processing, attackers converted negligible token deposits into disproportionate liquidity credits. The incident follows a familiar pattern of projects failing to remediate known security issues despite audit findings.