The SUI blockchain suffered a huge blow when its largest decentralized exchange, Cetus Protocol, was hacked for $260 million. The attack shook the community and knocked the SUI token down about 15% to around $3.81.
Lookonchain’s blockchain experts revealed that a hacker associated with the wallet “0xe28b50” altered Cetus by tricking the system with phony tokens such as BULLA. By interfering with the liquidity pools, the attacker was able to drain actual assets such as SUI and USDC, taking about 12.9 million SUI worth around $54 million and $60 million in USDC.
The hacker then converted most of the stolen USDC to Ethereum. They have already spent $58.3 million USDC to buy 21,938 ETH, at an average price of $2,658 per ETH, attempting to cover their tracks and launder the funds.
Cetus quickly paused its smart contracts to prevent further damage and launched a full investigation. In a statement, the team confirmed they became aware of the incident at 3:52 AM PT and are working nonstop to find the root cause and recover the funds.
In a show of solidarity, Binance founder CZ (Changpeng Zhao) spoke out on X (formerly Twitter), saying, “We are doing what we can to help SUI. Not a pleasant situation. Hope everyone stay SAFU!” His message brought some comfort to a shaken community, signaling that major players are stepping up in a tough moment.
While it is still early, the Cetus team is working diligently to identify the hacker and protect the ecosystem. Other changes are planned soon, but for the time being, the primary focus is on damage management and community assistance.
SUI briefly surged after OKX launched xBTC but quickly dropped following news of a $260M hack on its DEX, Cetus. Following initial reports of a $200 million outflow, panic gripped the SUI community, causing a sharp sell-off. The token, which had gained 4.91% over 24 hours, dropped more than 10% in just four hours and is now trading around $3.90.
This is a tough moment for the SUI ecosystem, a reminder that while crypto drives innovation, it also requires constant vigilance.
