Author: ChandlerZ, Foresight News
On the evening of May 22, the Sui ecosystem liquidity protocol Cetus Protocol was exposed to a serious security incident. To prevent the situation from deteriorating, the protocol party has urgently suspended the operation of its smart contracts. According to Lookonchain monitoring, the Cetus protocol was hacked on SUI, with losses exceeding US$260 million. Hackers are converting stolen funds into USDC and cross-chaining to Ethereum to exchange for ETH. Currently, about US$60 million of USDC has completed the cross-chain.
At the same time, as the core funding pool was drained by attackers, the prices of a series of tokens in the Sui ecosystem that rely on these funding pools for trading have almost experienced a devastating plunge, with a general drop of more than 70%, and many even as high as more than 90%, such as LBTC and AXOL, which are close to -99%.
Sporadic news that Cetus Protocol may be under attack by hackers began to circulate in the cryptocurrency community. Early signs showed that the protocol's transaction pool deployed on the Sui chain had an abnormal fund clearing phenomenon, which quickly aroused the vigilance and anxiety of market participants.
Almost at the same time as the news of the attack came out, the price of Cetus Protocol's native governance token CETUS fell like a cliff. Market data shows that the CETUS token fell by more than a staggering 40% in just two hours, falling rapidly from the price level before the attack, from $0.257 to $0.146, and then rebounded slightly, but still hovered around $0.17.
As time went by, the severity of the incident became clear. BWEnews pointed out that the economic losses caused by the security incident against Cetus Protocol are estimated to have exceeded $150 million.
Subsequently monitored by the on-chain data analysis platform Lookonchain, the Cetus protocol lost more than $260 million. Hackers are converting the stolen funds into USDC and transferring them across the chain to Ethereum to exchange for ETH. Currently, about $60 million of USDC has completed the cross-chain transfer.
According to Slowmist The Chief Security Information Officer said that his team initially analyzed the cause and suspected that the problem was caused by a vulnerability due to calculation accuracy.
Faced with the overwhelming negative news, the continued decline in token prices and the widespread panic in the community, the official team of Cetus Protocol issued a statement through its official channels confirming that the protocol had indeed detected a security incident and emphasized that "for security reasons, its smart contract has been temporarily suspended." The team is making every effort to conduct an emergency investigation into the incident and will release further investigation results and subsequent processing statements to the public as soon as possible.
Changpeng Zhao also said:
"We are doing our best to help SUI. The situation is not good. I hope everyone is safe!"
Foresight News will continue to follow up on the latest developments of the Cetus Protocol security incident.
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