Crypto DeFi Project Cetus Protocol Suffers Security Breach

The protocol’s native token, CETUS, dropped as much as 18 percent following the news.

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By Sidhartha Shukla, Bloomberg  | Updated: 23 May 2025 13:23 IST
Highlights
  • The project confirmed the incident in a post on X
  • The attacker deploys spoof tokens to manipulate price curves
  • A further investigation statement is expected to be made soon

The Cetus Protocol is now trying to prevent further theft of funds

Photo Credit: Pexels/ Shoma Shimazaki

Cetus Protocol, a decentralised crypto exchange and key liquidity provider on the Sui blockchain, said it lost approximately $223 million (roughly Rs. 1,910 crore) in a security breach.

The project confirmed the incident in a post on X, formerly Twitter, stating that its smart contracts had been paused “temporarily for safety” and that a full investigation is underway. “The team is investigating the incident at the moment. A further investigation statement will be made soon,” the post said.  

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“We have took immediate action to lock our contract preventing further theft of funds. $162 million (roughly Rs. 1,387 crore) of the compromised funds have been successfully paused,” the firm said in a statement to Bloomberg News. “We are working with the Sui Foundation and other ecosystem members right now on next-step solutions, with the goal of recovering the remaining stolen funds.” 

The protocol's native token, CETUS, dropped as much as 18 percent following the news, data from CoinGecko show.

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“The attacker exploited vulnerabilities in Cetus Protocol's smart contracts by deploying spoof tokens to manipulate price curves and reserve calculations,” said Deddy Lavid, CEO of blockchain security firm Cyvers. “This allowed them to extract real assets from multiple liquidity pools, including the SUI/USDC pool.”

© 2025 Bloomberg LP

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

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