In response to a $223 million hack, Sui Network compensates Cetus completely.

In a significant move to restore user confidence, the Sui Foundation has granted a loan to Cetus Protocol, enabling the decentralized exchange (DEX) on the Sui blockchain to fully compensate users affected by last week’s $223 million exploit.

This loan specifically covers the assets lost through bridging and is distinct from the frozen tokens currently locked on-chain, which await a community vote to determine their use in reimbursements.

Cetus announced on X that, with support from the Sui Foundation and its own treasury funds, it is now positioned to reimburse all stolen off-chain assets, contingent on approval via the forthcoming on-chain governance proposal.

“The loan from the Sui Foundation is a pivotal factor in making a 100% recovery possible for impacted users,” Cetus said.

The recovery plan’s success depends on the outcome of the pending governance vote, which will decide whether the frozen funds can be unlocked to finalize compensation.

“These are extraordinary steps demonstrating our commitment to protecting the Sui ecosystem,” said the Sui Foundation in a statement, emphasizing that full recovery is achievable with community backing.

The attack exploited Cetus’s pricing curves and reserve logic by manipulating spoof tokens such as BULLA, enabling the withdrawal of legitimate assets including SUI and USDC without adequate collateral.

More than $162 million of stolen tokens were frozen on-chain shortly after the breach, while the attacker also bridged out other assets through multiple channels. The hacker’s wallet remains active, holding over 12.9 million SUI tokens, with some funds likely concealed or swapped across networks.

Cetus halted all smart contract activity and launched an investigation following the hack, with its CETUS token plummeting nearly 40%. The incident also slowed DeFi operations across the Sui network as users and investors reassessed protocol security.

With the loan secured from the Sui Foundation, Cetus is now ready to start reimbursing users immediately, signaling a crucial step towards recovery and renewed trust.