Cetus Protocol Relaunches After $223M Hack With Full Audits

• Cetus used loan reserves and frozen assets to restore up to 99% of pool liquidity.
• Users will get CETUS tokens for losses, with 5% claimable now and more every month.
• Cetus added real-time monitoring and set asset flow limits to stop future threats fast.

Cetus Protocol, a decentralized exchange on the Sui and Aptos blockchains, has resumed operations after a $223 million exploit on May 22. The team announced on Sunday that the protocol is fully operational again, with multiple security enhancements and user compensation programs already underway.

The protocol announced new plans to transition to a fully open-source model. This includes launching a new whitehat bounty program to encourage community-driven technical and security contributions. A key part of the recovery plan was repairing the exploited vulnerability, restoring pool data, and conducting extensive security audits.

Funding Liquidity Recovery and Compensation

To restore damaged liquidity pools, Cetus used three main funding sources. These include a $30 million USDC loan from the Sui Foundation, $7 million in internal reserves, and part of the attacker’s frozen assets. According to Cetus, recovery across affected pools now ranges from 85% to 99%, depending on the extent of the initial drain.

Additionally, Cetus distributed 15% of its native CETUS token supply to affected users as compensation. Five percent can be claimed immediately, while the remaining ten percent will be unlocked monthly, beginning June 10, 2025. The team clarified that this allocation was drawn from unvested team tokens and did not inflate the total CETUS supply.

Importantly, users will retain access to compensation even after removing liquidity. This is possible through their LP position NFTs, which will remain valid for CETUS redemption.

Strengthening Security Measures and Infrastructure

Cetus confirmed that a complete patch of the faulty software component had been implemented before relaunch. Security audits were conducted on all revised codebases, including the updated contracts and compensation mechanisms. Furthermore, Cetus plans to conduct another round of audits and will install new real-time monitoring tools to further enhance threat detection.

Additionally, improved risk configurations and controlled rate limits on asset flows have been introduced to prevent further exploitation. The team declared that additional monitoring features and infrastructure changes are scheduled for deployment in the coming weeks.

Related: SUI Blockchain’s Cetus DEX Hacked, $11M Drained in SUI

What Does This Mean for DeFi Trust?

“This restart signifies more than just a relaunch, but a renewal,” the Cetus team stated. In a separate message, they wrote, “Legends are not defined by their successes; they are defined by how they bounce back.”

The platform’s updated roadmap, enhanced safeguards, and public apology reflect a shift toward resilience and transparency. “We are not leaving this behind lightly,” they emphasized. “We’re rebuilding — more secure, more resilient.”

The current developments around the Cetus Protocol suggest a more active approach to help build DeFi’s trust and reinforce Cetus’ role within the broader Sui ecosystem.

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