Validators controlling over 90% of the stake on the Sui blockchain have voted in favor of a recovery proposal aimed at addressing the recent Cetus exploit. The community-driven vote, initially scheduled for a longer period, was closed early due to overwhelming support. The decision enables the secure transfer of compromised funds to a multi-signature wallet, paving the way for restitution to affected users.
Within just 48 hours, the Sui community united to pass a critical on-chain vote — marking a pivotal moment for the entire ecosystem. Cetus extends our deepest gratitude to the >90% of validators and stakers who voted in favor. Regardless of your stance, your participation… https://t.co/UN2DrlDRTw
— Cetus🐳 (@CetusProtocol) May 29, 2025
Protocol Upgrade Enables Fund Transfer
The Sui Foundation confirmed that the majority vote — excluding its own influence to maintain neutrality — approved an upgrade to the protocol. This update permits the movement of frozen assets, previously under hacker control, to a multi-signature wallet managed by trusted parties including Cetus, the Sui Foundation, and security firm OtterSec. The funds will remain protected in the wallet until a clear distribution path is established for users impacted by the breach.
Cetus Outlines Recovery Steps and Compensation Plan
Following the vote, Cetus detailed its multi-step recovery plan. Once the protocol is updated, the team will retrieve data from affected liquidity pools and calculate individual losses. Given that the attacker frequently swapped assets during the exploit, fund values have shifted. Cetus plans to handle asset conversions strategically to prevent further losses and ensure market stability.
Enhancements to the CLMM (Constant Liquidity Market Maker) contract have been implemented and are currently undergoing independent security audits. Additionally, Cetus is preparing a new compensation contract to reimburse liquidity providers in the event of residual losses. This contract, along with supporting peripheral module upgrades, is also being audited for transparency and reliability.
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Community Governance Demonstrates Strength
The Sui Foundation praised the swift and coordinated response from validators and stakers, emphasizing the importance of inclusive governance in securing and improving the network. “Your involvement is another step towards dealing with this issue and growing our future together,” Cetus stated in a community update.
The full recovery process is expected to conclude within a week, allowing unaffected pools to continue operating and restoring functionality for compromised ones. Both Cetus and the Sui Foundation have committed to ongoing transparency as the protocol recovers.
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