Cetus Protocol Pledges Full Repayment Following $223M Hack, Seeks Community Approval for Frozen Funds

Cetus Protocol has announced plans to fully reimburse users affected by a $223 million hack on May 22, 2025. The breach, caused by a glitch in the platform’s trading system, sent shockwaves through the crypto community before swift action from Cetus and the Sui Foundation stabilized the situation.

The repayment strategy involves three funding sources: Cetus’ own reserves, a loan from the sui Foundation, and $162 million in frozen assets requiring community approval to unlock. "We take this responsibility seriously," the protocol stated in a May 27 post, emphasizing their commitment to make users whole regardless of the vote’s outcome.

The proposal represents a rare case of post-hack accountability in decentralized finance, with the SUI ecosystem demonstrating unusual cohesion in crisis response. Market observers note the incident’s resolution could set precedents for handling future smart contract exploits.