Sui Validators Approve Major Recovery Plan

After Cetus, a decentralized exchange, was exploited for over $220 million on May 22, Sui validators acted quickly to freeze $162 million in digital assets. The fate of these funds was determined through a governance vote concluded on May 29.

With 90.9% of validators voting in favor, the recovery proposal passed. The frozen assets will now be transferred to a multisignature wallet and held in trust until distributed to affected users, according to Sui’s official announcement.

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

This move signals a pivotal step toward financial restitution for those impacted by the exploit.

Validator Intervention Sparks Governance Debate

The swift validator action reignited debate within the crypto world. While decentralization purists voiced concern over the ability to freeze onchain assets, others praised the move as an effective counter to escalating security threats in DeFi.

The recovery initiative extends beyond the frozen funds. It will also leverage Cetus’ own treasury and an emergency loan from the Sui Foundation to fully restore protocol operations.

Cetus Targets Full Recovery Within One Week

Cetus expressed appreciation for the rapid community support and outlined a full roadmap for protocol recovery. The first phase involves upgrading validator nodes to transfer the funds to a multisig wallet, followed by system restoration.

The team expects a full restart within one week. All liquidity providers will regain access to their assets, while remaining losses will be compensated via a dedicated smart contract currently undergoing auditor review.

Cetus emphasized that this compensation mechanism will ensure fair restitution for all affected users.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Sui Community Approves Repayment Plan After Cetus Exploit appeared first on Coin Engineer.

One message. That’s all it takes for hackers to drain your entire wallet. A signed offchain message is now powerful enough to hand over control of your funds — no onchain transaction required.

EIP-7702: The Risky New Delegation Mechanism

Activated on May 7, 2025, Pectra’s centerpiece EIP-7702 introduces a transaction type called SetCode, which allows users to delegate control of their wallets via a simple signature.

Arda Usman, a Solidity smart contract auditor, confirmed: “An attacker can use this offchain signature to install malicious code into an externally owned account (EOA) and move ETH or tokens — without the user ever signing a transaction.”

This feature effectively transforms user wallets into smart contracts, opening the door to silent yet devastating attacks.

A Stealth Threat Via Innocent-Looking Messages

Yehor Rudytsia, an onchain researcher at Hacken, emphasized that this transaction type allows arbitrary code to be installed in wallets. Previously, such a change required an actual transaction; now, only a signature is enough.

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

This shift means phishing attempts, fake DApps, or Discord scams can now result in complete wallet takeovers. “We believe this will become the most common attack vector following the Pectra upgrade,” Rudytsia warned.

Wallet applications that fail to correctly interpret transaction type 0x04 are especially vulnerable.

Hardware Wallets Are Not Immune Anymore

The once-clear distinction between hot and cold wallets is fading. Rudytsia highlighted that hardware wallets are now just as vulnerable if users unknowingly sign malicious messages: “Once signed, all funds can be gone in a moment.”

To stay safe, users should:

• Never sign messages they do not fully understand.
• Look out for delegation requests, especially those involving nonce values.
• Be aware that some delegation signatures can be replayed on any Ethereum-compatible chain.

While multisig wallets offer more robust protection, single-key wallets — including hardware ones — must adopt new safeguards to prevent exploitation.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Ethereum Pectra Update Contains a Critical Vulnerability! appeared first on Coin Engineer.

You might like it: What is Trust Wallet? What Makes It Unique?

It is not a new idea. It has been used in the banking sector for a long time. In the crypto world, most Bitcoin wallets use just one key which is easier to manage. But it also means that if someone gets hold of that key, they can take all your money. That’s where multisig comes in.

Using a multisig wallet is becoming more popular, especially for businesses. It’s like having a team of people guarding your money instead of relying on just one person.

How Does a Multi-signature Wallet Actually Work?

The process of making a transaction with a multisig wallet is similar regardless of the specific solution you choose. First, you input the transaction details into the wallet. Then, you use your private key to sign the transaction. At this point, the transaction becomes pending. It’s not finalized and the funds aren’t sent until all the required keys are submitted.

Requiring multiple signatures to authorize a transaction makes it much harder for someone to steal your Bitcoin.

They would need access to all of your private keys to get hold of your funds. It adds an extra layer of security and safeguards your money from potential theft.

So, by using a multisig wallet, you can protect your Bitcoin from the loss or theft of a single private key. The process of making a transaction is straightforward and your funds are safe as long as all the necessary keys are used.

You can present your own thoughts as comments about the topic. Moreover, you can follow us on Telegram and YouTube channels for this kind of news.

The post What Is Multi-Signature Wallet? How Does It Work? appeared first on Coin Engineer.