Presumed Hack of Cetus on SUI : A Shockwave for the Blockchain
On May 22, 2025, alarming news shook the world of decentralized finance (DeFi): Cetus, the main liquidity provider (LP) and decentralized exchange (DEX) on the SUI blockchain, was allegedly hacked.
According to initial reports, approximately $11 million in SUI was drained from the SUI/USDC pool, one of the largest in the ecosystem. If confirmed, this hack once again highlights the persistent vulnerabilities in the DeFi sector, despite technological advances.
The attack had immediate repercussions on SUI’s liquidity pools. Data shows that the majority of tokens associated with this ecosystem suffered massive losses, with value drops often exceeding 75%.
Among the hardest-hit victims are popular memecoins like LOFI, which experienced a staggering 98% drop in value within minutes. Other tokens, such as BLUB (-75.84%) and SUIMON (-78.43%), were also not spared, plunging investors into widespread panic.
A Collapse of Memecoins and Doubts on Security
The crash of memecoins in the SUI ecosystem highlights the vulnerability of these speculative assets to security incidents. LOFI, which had attracted investors with its “high risk, high reward” potential, saw its value plummet from $0.01730 to almost zero.
This crash was exacerbated by the draining of liquidity pools, preventing traders from limiting their losses. Users on X, like @amarajasi, expressed their frustration at the relentless nature of the crypto sector, while others, like @PixelgamingLDN, questioned the hack theory, suggesting it could be a bug or an unintentional flaw.
Cetus quickly responded via its Discord, stating that the incident could be linked to a bug in the oracle rather than a malicious hack. The team’s message, shared by a user on X, indicates that they are actively working to resolve the issue and promise official announcements soon.
However, these statements have not been enough to reassure the community, with concerns about potential permanent fund losses, especially for liquidity providers exposed in the SUI/USDC pool.
The SUI token also lost 7% of its value within minutes. It currently hovers above $3.8 with a 0.5% decrease for the day.
In conclusion, this incident highlights the ongoing challenges facing SUI, a still young blockchain often praised for its horizontal scalability and low costs. While Cetus had established itself as a key player with advanced features like Cetus Plus, which aggregates liquidity from multiple sources on SUI, this event could hinder ecosystem growth.
Investors, already wary of the rise in DeFi hacks (19 reported incidents in the first quarter of 2023 according to Naoris Protocol), may turn away from layer 1s like SUI in favour of others deemed safer, such as Solana, as suggested by a user on X.
Awaiting clarifications from Cetus, this incident underscores the critical importance of security in the DeFi space. Regular audits, protocol transparency, and better user education remain priorities to prevent such tragedies from recurring.
