- Cetus Protocol offers hacker a $6 million bounty.
- $223 million stolen in security breach.
- Sui validators freeze compromised $162 million tokens.
Cetus Protocol, a decentralized exchange on the Sui blockchain, offers a $6 million bounty to a hacker after a $223 million security breach.
Cetus Protocol Incident Details
The Cetus Protocol incident resulted in $223 million in losses, leading to a $6 million bounty offer for the hacker. Inca Digital is leading the negotiations, with help from the Sui Foundation.
In addition, Sui validators are freezing compromised tokens, pausing activities linked to the hack. Critics discuss the centralized aspects of the response, highlighting debate within the crypto community. Matteo, Pseudonymous Crypto Analyst, commented on the response to the hack, “This is what real world decentralization looks like. Not just powerless, but responsive and aligned with the community,” adding that decentralization “isn’t about standing by while people get hurt, it’s about the power to act together, without needing permission.”
Consequences of the Hack
Recent actions have heavily impacted CETUS and SUI token values. Discussions about the Sui blockchain response show differing perspectives on decentralization principles and effectiveness of freezing actions.
Inca Digital and the Sui Foundation handle ongoing negotiation efforts. The response includes offering immunity from prosecution if the stolen funds are returned, raising substantial debate.
Potential outcomes include changes in cybersecurity protocols across DeFi networks. Observing past breaches, similar vulnerabilities in smart contracts often lead to tighter security measures and increased scrutiny among crypto exchanges.
