Cetus Protocol Hacked for Over $200M, Shakes Confidence in Sui Ecosystem

Key highlights

• Cetus protocol hacked with losses amounting $260 million

• SUI ecosystem is meltdown with sui declining from $4.19 to $3.89.

  
  

In one of the most devastating decentralized finance (DeFi) hacks of 2025, Cetus Protocol Sui blockchain’s leading DEX and liquidity hub has been hacked, with losses reportedly exceeding $260 million. The hack has sent shockwaves through the Sui ecosystem, triggering a collapse in token prices and raising serious concerns about the platform’s security and future.

Cetus Protocol Hack

The hack was first identified by on-chain sleuths like COMDARE3 and later confirmed by multiple blockchain analytics firms, including Onchain Lens. The attacker appears to have gained full control over all SUI-denominated liquidity pools on Cetus, allowing them to systematically drain the platform of assets.

Initial estimates pegged the stolen amount at $200 million, but updated data suggests the losses may be closer to $260 million. Among the stolen assets are: $52 million in SUI, $20 million in wrapped USDT, $4.9 million in Haedal Staked SUI (HASUI) and tens of millions in various lesser-known tokens like Toilet (TOILET)

The Hacker Spends the Loot

After looting the platform, the attacker quickly began converting stolen tokens primarily into USDC and cross-chaining them to Ethereum. Lookonchain and Onchain Lens report that approximately $60 million in USDC has already been bridged, where the hacker has started swapping them for ETH. On-chain records show the attacker used $58.3 million USDC to buy 21,938 ETH, averaging a price of $2,658 per ETH.

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Market Meltdown Across Sui

The immediate fallout from the hack was brutal. According to DEX Screener data, nearly all top tokens on Cetus experienced catastrophic losses: Top 15 tokens on the DEX dropped more than 75%. Firstly, tokens like Lombard Staked BTC (LBTC) and AXOLcoin (AXOL) collapsed nearly 100%. SUI, the native token of the blockchain, plunged sharply, reflecting a broader crisis of confidence in the ecosystem

The Cetus team has attempted to control the narrative, referring to the exploit on Discord as a mere “bug.” That wording has sparked significant backlash from industry professionals, particularly compliance experts who argue that minimizing the breach only adds insult to injury. In the immediate aftermath, Cetus has paused its smart contracts, halting trading activity to prevent further damage. However, for many investors and developers in the Sui ecosystem, the damage is already done—trust has been eroded.

What’s Next?

As liquidity providers pull funds and developers reassess risk, the long-term impact on Sui’s DeFi landscape could be profound.

This incident also raises broader questions about the speed at which new ecosystems like Sui are developing complex financial infrastructure without fully battle-tested security measures. While the transparency of blockchain allows for rapid detection of such exploits, prevention is still lacking.