Developers Promise Refunds After Massive Hack Attack on Altcoin, But It’s Still Not Enough: Prices Continue to Fall

Cryptocurrency protocol Cetus has taken an important step towards the return of user funds following the massive cyberattack that occurred on May 22, 2025.

Following community approval via on-chain voting, approximately $160 million in frozen funds associated with the attack were transferred to a multisig wallet jointly managed by CETUS, the Sui Foundation, and security firm OtterSec.

Despite this statement from the developers, the CETUS token price lost over 4% today.

“Following the on-chain vote, the previously frozen funds were securely transferred to a multisig wallet that is jointly managed by Cetus, the Sui Foundation, and OtterSec,” Cetus said in a statement on X (formerly Twitter).

The funds in question will be stored in this wallet until they are returned to users. Cetus officials reported that with this development, the next stage of the recovery process has been moved on and their teams are working at full capacity to implement the roadmap in question. The plan includes updating smart contracts, restoring liquidity, and reopening the platform.

To keep the community informed, Cetus also announced plans to host a Twitter Space event with the Sui community on June 2, 2025. The event will cover details of the attack, progress in the recovery process, and questions from the community. The exact time of the event will be announced in the coming days.

What Happened?

Cetus Protocol was hit with a major security breach on May 22. Attackers exploited a vulnerability in an open-source library for smart contracts and manipulated prices in liquidity pools, removing approximately $223 million worth of SUI and other tokens from the system. Although Cetus immediately paused its smart contract after the attack was discovered, the attackers had already taken a large amount of funds.

*This is not investment advice.

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