Arkham Intelligence reported that the exploiter transferred 6,999 ETH to a newly created wallet. The movement followed an earlier one-ETH test transaction the attacker used to verify routing paths, a method frequently seen in DeFi exploit behavior. These transfers suggest a coordinated attempt to secure exit liquidity before further recovery efforts restrict access.

Recovery Efforts Reveal Hidden Scaling Vulnerability

Balancer stated that the recovered amount was tied to a vulnerability inside its internal scaling logic. The issue originated from a function responsible for adjusting token values during pool calculations. The attacker identified small rounding discrepancies and repeated swap operations to generate precise micro-profits. This approach differed from earlier Balancer incidents and demonstrated how new attack vectors continue to emerge in decentralized finance.

StakeWise also recovered a major portion of the assets drained during the event. The project retrieved 5,041 osETH through a smart contract call, reducing the overall stolen amount from $117 million to $98 million. The improvement helped several platforms restore halted services. Stader Polygon resumed MaticX unstaking after temporarily suspending withdrawals to prevent liquidity access during the critical stage of the investigation.

Major Crypto Security Breaches Continue Through 2025

The Balancer exploit adds to a series of high-impact attacks that shaped the crypto landscape in 2025. Earlier in the year, Cetus Protocol lost $260 million after a coordinated exploit. Investigators traced 12.9 million SUI to an attacker-linked wallet before the funds were moved through USDC and converted into ETH. Bybit also faced a severe security breach involving more than $1.4 billion in digital assets, marked by unusual ETH withdrawals from addresses tied to exchange inflows. Centralized platform BigONE reported a $27 million loss after attackers accessed its hot wallet, draining BTC, ETH, SOL, SHIB and USDT.

These incidents illustrate a broader trend of exploiters combining multi-chain routing, stablecoin swaps and rapid wallet transitions to obscure their tracks. Analysts emphasize that these patterns now form a consistent framework across most high-value attacks.

On-Chain Signals and Market Impact as the Investigation Continues

The attacker’s movements have intensified market attention as observers monitor large-scale transfers and potential liquidation strategies. The ongoing activity increases concerns about short-term liquidity pressure, especially in ecosystems linked to Balancer’s pools. On-chain experts note that rising conversion frequency, new address creation and repeated routing tests often indicate imminent selling phases during post-exploit periods.

The Balancer hack continues to evolve as investigators analyze transaction patterns and track the remaining assets. Market participants remain alert, recognizing that the attacker’s next steps could influence sentiment, trading volume and liquidity in the coming days.

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The Cetus incident, which has made waves in the blockchain world recently, was linked by many to a security vulnerability in the Sui or Move platforms. However, according to statements by developers and security experts, these claims are inaccurate. The incident actually occurred due to an error in Cetus’s own math library. They assert that the issue was not caused by a direct vulnerability in the Sui network or the Move programming. A miscalculation in Cetus’s mathematical operations led to incorrect results and unexpected consequences. Therefore, it is considered a problem specific to the Cetus project. 

According to the published report, the network was designed specifically to support the development of more secure smart contracts. The team expressed that it was deeply disappointed to witness such a major incident on a single dApp. They also emphasized that incidents like this are part of the growth process that every major blockchain faces over time. Even the best system designs or programming languages cannot fully prevent human error. 

SUI $10 Million Security Investment 

Sui has taken a significant step to strengthen ecosystem security. It will elaborate on its existing security measures. Additionally, it has allocated $10 million toward audits, bug bounty programs, formal verification, and other security initiatives. Sui is committed to spending an additional $10 million on security efforts. The team is working closely with the developer community to refine its security plans. 

SUI Technical Details 

According to security firm SlowMist’s analysis, the “checked_shlw” function in Cetus’s smart contract failed to perform overflow checks correctly. This flaw allowed attackers to over-mint liquidity with a single token. Research by Verichains indicated that similar mathematical errors might exist in other projects within the Sui ecosystem. However, those projects have started correcting the related issues. 

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The post SUI Invests $10 Million in Security After Cetus Hack  appeared first on Coin Engineer.

Cetus Protocol Hacked: First Alarm on Social Media

The panic initially spread through technical analysis and on-chain data shared on the social media platform X (formerly Twitter). Rumors about a security exploit in Cetus Protocol’s smart contracts quickly circulated. Some independent analysts claimed to have identified unusual transfer movements from specific wallet addresses, which triggered serious concern among investors.

Scale of the Attack: Millions of Dollars Stolen

New information emerging about the attack suggests that the scale of the incident may be much larger than initially thought. According to some on-chain analysis sources, the hacker is believed to have stolen a total of $475 million worth of crypto assets. This figure is significantly higher than previously reported amounts. Moreover, the attacker’s wallet remains active, and funds continue to be moved to different addresses. This indicates that the incident is not yet fully contained and that further risks may still be unfolding.

These developments raise concerns that the Cetus Protocol hack could rank among the largest DeFi attacks to date.

Official Statement from Cetus

The Cetus Protocol team confirmed the breach in an official statement:

“There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.”

Alert Announcement

There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.

— Cetus (@CetusProtocol) May 22, 2025

A Curious Development: Stolen Funds Allegedly Deposited into Suilend

On-chain data shared by the community suggests that the attacker may have deposited around $10 million worth of stolen SUI into Suilend Protocol, possibly to borrow stablecoins. This hints at a highly organized and layered exploit.

Binance Founder CZ: “We Are Doing What We Can To Help SUI”

Following the event, Binance founder CZ (Changpeng Zhao) made a public statement via his personal account:

“We’re doing our best to help SUI. Not a pleasant situation. Hope everyone stays SAFU!”

We are doing what we can to help SUI. Not a pleasant situation. Hope everyone stay SAFU!

— CZ BNB (@cz_binance) May 22, 2025

CZ’s message shows that major crypto exchanges are not indifferent to such incidents and continue to support the broader ecosystem in times of crisis.

Support from Binance CEO Teng Did Not Delay!

Binance CEO Richard Teng also voiced his support for the SUI ecosystem, following CZ’s statement. In his message, Teng emphasized that the team is fully aware of the current concerns and is doing everything possible to assist and support the ecosystem.

We are aware of concerns surrounding SUI at the moment.

Our team is doing everything we can to provide assistance and support the ecosystem.

— Richard Teng (@_RichardTeng) May 22, 2025

This reinforces Binance’s image as not just a trading platform, but a key player committed to safeguarding the broader crypto landscape during critical times.

This content is not financial advice. Markets are highly volatile, and it’s essential to conduct your own research before making any investment decisions.

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Cetus Protocol Breach Pressures SUI: $4.01 Support In Jeopardy

Following the news of the security breach, SUI witnessed sharp selling pressure and is currently attempting to hold above the crucial $4.01 support. Analysts warn that if this level is lost on a 4-hour close, the price may retreat further to the $3.83 support.

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Increased trading volume in recent hours signals that this level is under heavy scrutiny. A confirmed breakdown could open the door to further downside pressure.

Recovery Scenario: Targeting A Move Toward $4.20

Still, if $4.01 holds and buyers regain control, a short-term rebound is possible. In such a case, a recovery move toward $4.20 is likely. Technical indicators suggest an increased probability of testing this level again if support remains intact.

The coming hours could prove pivotal for SUI, as traders await confirmation of either a breakdown or a bounce from support.

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Following several technical analyses and on-chain data reports shared on X (formerly Twitter), investor concerns have grown. Independent analysts have pointed to unusual transaction patterns traced to specific wallet addresses, raising suspicions of a potential exploit being underway.

Sharp Price Decline in SUI and CETUS Tokens

After the news spread through social platforms, $SUI dropped by 3.8%, showing a swift negative response. The most significant impact, however, was seen in CETUS, the token at the heart of the incident. Cetus coin plummeted by approximately 40% within the same period, triggering alarm among holders.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

This downturn has dealt a blow not only to investor confidence in Cetus, but also to the overall reputation of the SUI network. Trading volumes surged as some investors scrambled to exit positions and shift funds to alternative protocols in an effort to minimize losses.

Official Statement Pending, All Eyes on Cetus Team

All attention is now on the Cetus Protocol team and their pending response. If the alleged exploit is confirmed, it will mark a serious reputational test not just for Cetus but for the broader SUI ecosystem. It may also prompt a renewed focus on smart contract security across other DeFi projects.

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What is Cetus Protocol?

Cetus Protocol offers a decentralized finance (DeFi) solution based on the Concentrated Liquidity Management model. It is built on the Sui and Aptos blockchains, providing users with more efficient trading and liquidity provisioning opportunities. The platform strives to create a sustainable ecosystem for both developers and investors in the DeFi space.

What is Concentrated Liquidity?

In a typical Automated Market Maker (AMM), liquidity is evenly distributed across the entire price curve (0, ∞). In contrast, concentrated liquidity is liquidity allocated within a specific price range. A concentrated liquidity protocol like Cetus allows liquidity providers to contribute their liquidity within a narrower price range, optimizing the utilization and profitability of their capital.

What is Move?

Move is a new, Rust-based open-source programming language designed to write secure smart contracts. Initially developed by Facebook to support the Diem blockchain, Move is platform-agnostic and provides common libraries, tools, and developer communities for blockchains with different data and execution models. Move focuses on security, avoiding common Web3 vulnerabilities like re-entrancy attacks, malicious tokens, and counterfeit token approvals. Both Aptos and Sui blockchains are developed in Move, contributing to the growing MoveVM ecosystem.

Cetus Protocol’s Benefits to the Ecosystem

One of the key advantages of Cetus is the liquidity efficiency offered by its concentrated liquidity algorithm. Both liquidity providers (LPs) and traders benefit from this design:

• Liquidity Providers (LPs): Can earn transaction fees more efficiently by concentrating liquidity within an active price range.
• Traders: Enjoy low slippage when trading close to the spot price.
• Developers: Can easily integrate with Cetus’ open-source smart contracts and SDKs, tapping into the platform’s efficient liquidity source.

How Does Cetus Protocol Work?

Cetus Protocol utilizes an AMM model, but it allows liquidity providers to concentrate their liquidity within specific price ranges, enhancing the overall efficiency compared to traditional AMMs.

• Concentrated Liquidity Management (CLMM): Liquidity is concentrated in a narrow price range, offering higher returns for LPs.
• Swap Transactions: The protocol allows token swaps with low transaction costs.
• Advanced Order Types: Users can leverage features like limit orders and range orders.
• Liquidity-as-a-Service: Cetus enables easy integration with other projects, supporting broader adoption.

You can review the project’s whitepaper for more in-depth details.

What is Cetus Protocol’s Goal?

Cetus aims to innovate in the decentralized finance space by providing low-cost, user-friendly trading opportunities. It seeks to reach a broader audience, especially within the Sui and Aptos ecosystems, and build a sustainable liquidity infrastructure for DeFi.

Who Created Cetus Protocol?

Cetus Protocol was founded by Henry Du, who led the development of an open, programmable, and modular liquidity protocol. The project also benefits from the contributions of experienced teams, particularly those behind the Sui and Aptos networks.

Who are Cetus Protocol’s Investors?

Cetus has attracted strategic investors at an early stage, including notable crypto-focused venture capital firms like OKX Ventures, KuCoin Ventures, SUI, and Animoca Brands. The core development communities of Sui and Aptos also played a significant role.

Cetus Protocol Tokenomics

The tokenomics of Cetus Protocol is based on a dual-token model:

• CETUS: The primary token of the ecosystem, with a total supply of 1 billion tokens. It is used for transaction fees, liquidity incentives, and staking rewards.
  • Distribution:
    • Community & Incentives: 40%
    • Development & Operational Funds: 30%
    • Early Investors: 15%
    • Reserve & Further Initiatives: 15%
• xCETUS: A staking model for long-term incentives.

The token distribution is designed to enhance transparency and build a sustainable community-driven ecosystem.

Conversion and Redemption

CETUS and xCETUS can be converted back and forth under certain conditions:

• CETUS to xCETUS: CETUS can be converted to xCETUS at a 1:1 ratio at any time.
• xCETUS to CETUS: Converting xCETUS back to CETUS requires a vesting period. The conversion ratio increases based on the vesting period chosen by the user.
  • Minimum 15-day vesting: 1:0.5 conversion rate.
  • Maximum 180-day vesting: 1:1 conversion rate.

Users cannot redeem CETUS until the vesting period is fully completed. Any unclaimed CETUS after the vesting period will be lost and directed to the Eco Treasury, which supports the protocol’s long-term sustainability and community incentives.

Conclusion: A Comprehensive Solution for DeFi

Cetus Protocol is not just a DEX, but also provides infrastructure services for blockchain projects, leveraging the performance advantages of Sui and Aptos. With its CLMM model, Cetus offers a more efficient use of liquidity compared to traditional DeFi protocols, providing better returns for liquidity providers and a smoother experience for traders. Its robust tokenomics, strategic partnerships, and user-focused design position Cetus as a significant player in the decentralized finance ecosystem.

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