Cetus Return With Open-Source Vision After Devastating Exploit

Yigit Taha OZTURK — Mon, 09 Jun 2025 07:00:15 +0000

Sometimes a single event can shake an entire ecosystem. In May, the crypto world witnessed one of those moments when Cetus, a Sui-native DEX, was exploited for $220 million. Now, it’s not just making a comeback — it’s rewriting its future.

The new direction? Open-source development, stronger security, and a commitment to compensate users.

Vulnerability Patched, Open-Source Future Unveiled

On May 22, attackers took advantage of a flaw in Cetus‘ pricing mechanism, draining major liquidity pools. Fortunately, $162 million worth of stolen assets were frozen shortly after.

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In a June 7 statement, the team revealed that they’ve not only patched the vulnerability but are also transitioning to an open-source model. A new white hat bounty program is launching to crowdsource contributions to security and stability.

Liquidity Restored Through Multiple Channels

To resume operations, Cetus replenished its liquidity using $7 million in cash reserves, a $30 million USDC loan from the Sui Foundation, and partial recovery of the stolen funds. Recovery rates for affected pools range from 85% to 99%, depending on the drain severity.

As part of a user compensation strategy, 15% of CETUS token supply has been allocated. While 5% will be distributed immediately, the remaining 10% will unlock linearly over 12 months, starting June 10.

Legal Action Underway As Security Tightens

Though a $6 million white hat bounty was initially offered, the attacker has started laundering funds, prompting Cetus to pursue legal action across multiple jurisdictions. Law enforcement agencies are actively involved, and the team remains confident about asset recovery.

Security audits are being ramped up again as Cetus aims to win back user trust through transparency and resilience.

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The post Cetus Return With Open-Source Vision After Devastating Exploit appeared first on Coin Engineer.

$244M Lost To Crypto Hacks In May Despite 40% Drop In Attacks

Yigit Taha OZTURK — Sun, 01 Jun 2025 14:00:53 +0000

According to blockchain security firm PeckShield, around $244.1 million was lost in 20 major crypto hacks during May 2025 — a 39% drop compared to April. However, the decline doesn’t paint a full picture, as one attack alone accounted for nearly $223 million in damages.

The biggest blow came on May 22, when Cetus, a decentralized exchange, was compromised. Hackers exploited a flaw in the “most significant bits” (MSB) check, manipulating liquidity parameters and creating disproportionately large positions, according to cybersecurity firm Dedaub.

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In a partial win for the ecosystem, Cetus and the Sui Network managed to freeze $157 million, representing about 71% of the stolen assets.

DeFi Platforms Remain Under Siege

The second-largest incident in May targeted the Cork Protocol, resulting in a $12 million loss. Attackers stole approximately 3,761 Wrapped Staked Ether (wstETH) and quickly converted it to ETH.

Other major breaches included:

A suspected North Korea-linked $5.2 million hack
An MBU token exploit worth $2.2 million
A MapleStory Universe vulnerability that led to a $1.2 million loss

Amid growing pressure, the crypto industry is boosting its defense posture. On May 31, Cointelegraph reported that BitMEX’s security team identified operational gaps within the Lazarus Group, a state-sponsored North Korean hacker unit. The counter-operation exposed key infrastructure elements like IP addresses, databases, and tracking algorithms.

Despite the dip in May, earlier months were worse. In Q1 2025 alone, hackers stole over $1.63 billion, with Bybit’s February breach accounting for $1.53 billion — one of the most severe crypto thefts in history.