The CETUS protocol, the leading decentralized exchange (DEX) on the SUI blockchain, has officially resumed operations in a major security incident last week, resulting in an estimated $22.3 million in utilization. The protocol temporarily suspended service after a breach and has now restarted upgraded security features and a renewed commitment to transparency.
The attack, discovered on June 1, is the result of vulnerability in external protocols that affect CETUS liquidity pool. According to preliminary investigations, exploits allow attackers to manipulate token prices and lose funds from the protocol. The CETU quickly stopped operations to include damage, freeze affected smart contracts, and began a comprehensive investigation.
Read more: CETUS protocol hackers exploit $223 million to intimidate the SUI ecosystem
Restart the plan and compensation framework
The CETUS reboot follows the implementation of several new security protocols, including real-time monitoring systems, enhanced Oracle protections and external smart contract audits. The project also announced a compensation plan for affected users, which will be launched in phases. Details include the recovery of 80% of the lost funds through insurance reserves and fiscal allocations, with the rest covered by future agreement revenues.
To support this recovery, the CETUS community has approved an emergency governance recommendation, enabling temporary reallocation of incentives for protocol costs and recovery efforts. According to the proposal, 30% of transaction fees are now redirected to the user recovery fund.
Despite the severity of the attack, the surrounding community remained cautiously optimistic. The protocol’s local token Cetus saw a modest rebound in transaction volumes after reissue. Meanwhile, the total value lockdown (TVL) on the platform has begun to gradually recover, although it is still below the attack level.
Many people are re-launching a critical test that sees itself as a critical one for CETU and the wider SUI ecosystem, which attempts to position itself as the security scalability of next-generation Defi applications.
Cetus is back!
🌊🌊🌊🐳 pic.twitter.com/tyq50vkeeg– cetus🐳 (@cetusprotocol) June 8, 2025
The safety of the spotlight
The CETUS incident has involved DEFI’s security standards for the entire industry. Although the attack exploits third-party vulnerability, the cascading effect emphasizes the interconnected risks inherent in chain financing.
As part of its recovery roadmap, Cetus is also working with other protocols and infrastructure providers on SUI to enhance cross-platform threat detection and response coordination. “It’s not just about CETU, it’s setting a new security benchmark for the entire ecosystem,” the team stressed.
With operations recovering and proactive security posture, CETUS aims to flip the pages to turbulent chapters in the coming months and rebuild user trust.
