ZachXBT Calls Out Sui Over Poor Incident Response Infrastructure

Blockchain analyst ZachXBT has publicly criticized Sui Network’s security infrastructure and its handling of the recent exploit. He says Sui’s decision to handle investigations in-house has limited its ability to respond effectively and track stolen funds.

Yesterday, June 2, Sui’s security team disclosed an update about the smart contract exploit that affected several DeFi protocols built on the Sui Network.

According to SuiSecurity, the attacker exploited a vulnerability related to “DeepBook,” the network’s order book engine.

ZachXBT Criticizes Sui’s Response Strategy

Shortly after the announcement, prominent crypto investigator ZachXBT responded with criticism. He argued that Sui’s reliance on internal tools and processes slowed its ability to handle the breach.

“Teams need to stop trying to do everything in-house because they are cheap,” he said in a post on X. “Any attacker will want to move funds off of Sui ASAP via bridges or CEXs to Bitcoin, Ethereum, Tron, or Solana.”

He stressed that Sui’s native-only tools made it difficult to track cross-chain fund movement, especially in complex laundering scenarios like those involving the North Korean Lazarus Group.

Aptos Cited as a Model of Improvement

ZachXBT compared Sui’s handling to Aptos, a rival Layer 1 blockchain. He said Aptos had once faced similar issues but responded swiftly after he made public recommendations. Their rapid adoption of cross-chain monitoring tools reportedly helped freeze a large amount of stolen funds linked to a DPRK attack earlier this year.

“There’s no excuse why Sui has not been able to do the same,” ZachXBT added, suggesting the delay is due to internal mismanagement.

Sui’s Recovery Plan in Progress

Earlier, Sui had launched an on-chain vote that led to the successful transfer of $160 million in exploited funds to a multisig wallet. The funds are now jointly managed by Cetus, the Sui Foundation, and OtterSec. Over 90% of validators and stakers supported the move.

Meanwhile, Cetus has begun restoring the protocol, including upgrading its liquidity market maker contract and planning asset conversion and compensation strategies.

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