The Sui community, which is the backbone of the decentralized exchange Cetus, has given their overwhelming approval for the plan to recover funds stolen during a colossal $223 million cyber heist. The theft took place last week, with a significant portion of the stolen tokens, around $162 million worth, being blacklisted and frozen on the Sui platform by validators.
The frozen tokens currently reside in two attacker addresses. However, an onchain governance vote to unfreeze and recover these assets has secured preliminary approval on May 29, with an impressive 90% of voters supporting the proposal, as per an update provided on Friday.
The plan entails Sui network validators transferring the frozen assets to a multisignature trust. This trust will be jointly managed by Cetus, blockchain security firm OtterSec, and the Sui Foundation, and will be executed via a network upgrade.
Furthermore, the DEX is designing a specialized compensation contract to oversee the allocation of recovered funds. It also plans to introduce an emergency pool recovery feature within its Concentrated Liquidity Market Maker (CLMM) infrastructure.
According to the team, “Cetus aims to accomplish complete recovery and restart proceedings within a week. This includes data restoration, rebooting the upgraded CLMM contract, and fully resuming all halted product functions, including LP functions.”
The attack, which transpired on May 22, exploited a weakness in Cetus’ CLMM model, draining approximately $223 million from its liquidity pools. The protocol later fixed an error in the open-source library code used in its smart contracts and offered a $6 million white-hat reward to recover 20,920 ETH ($56.3 million) that the attacker had moved to Ethereum.
The incident contributes to the staggering $5.3 billion lost to DeFi hacks so far, including the $600 million Ronin breach and the $323 million Wormhole exploit, as per The Block’s data dashboard.
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