The Sui blockchain’s primary liquidity provider, Cetus Protocol, has been compromised in a significant exploit, with hackers draining over $260 million in assets.

This event has led to a sharp decline in SUI’s price by 15% and has caused temporary trading halts on the platform.

Cetus in a post on X wrote: “There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.”

Incident Overview

 → Cetus Protocol, the primary Liquidity Pool (LP) provider on SUI, has suffered a significant exploit. → Exploiter gained full control over SUI-denominated liquidity pools, resulting in widespread draining of funds.

Financial Impact

 → Initial reports suggest allegedly over $200M in liquidity has been compromised.

→ Exploiter actively bridging USDC off-chain in ~$1M batches.

→ SUI/USDC pool alone drained for approximately $11M.

 → Tokens paired with SUI severely impacted, prices collapsing by 70-90%.

Affected Tokens & Trading

→ Majority of memecoins and tokens paired with SUI severely down (70%-90%).

→ Decentralized Exchange (DEX) swaps compromised, trades failing due to drained liquidity pools.

→ Users unable to buy dips or sell positions on affected pairs.

Current Situation

→ Awaiting official Cetus Protocol response, no formal acknowledgment or mitigation measures announced yet.