On May 22, 2025, Cetus Protocol, the main decentralized exchange on the Sui blockchain, was exploited, resulting in the theft of approximately $260 million in digital assets. The attack took advantage of a flaw in Cetus' pricing mechanism and had a significant impact on the Sui community, causing a 15% drop in the token price. The exploit involved a calculated series of actions: the attacker utilized a flash loan to gain immediate funds, introduced fake tokens that distorted price feeds, and drained liquidity pools by exploiting pricing vulnerabilities. Following the attack, liquidity providers faced massive losses, with CETUS token dropping over 40%. Despite multiple audits, the vulnerabilities remained undetected, highlighting ongoing security challenges in the DeFi space. A structured recovery plan was initiated, with Sui validators voting to transfer $162 million in frozen assets to reimburse affected users. The incident underscores the need for enhanced security measures and ongoing vigilance in the rapidly evolving DeFi landscape.

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