Isabella García
Prices of multiple Sui-based tokens nosedived on Thursday morning following what appears to be a major exploit targeting Cetus Protocol, a core decentralized exchange and liquidity provider on the Sui network.
According to DEX Screener, tokens like LOFI and HIPPO have seen value plummet over 50% within just one hour, with some tokens crashing by more than 90%. While centralized exchanges show relatively stable pricing, the rapid liquidity drain on decentralized platforms is now beginning to impact broader market valuations.
CETUS, the protocol’s native token, also fell around 50% on DEXs and approximately 30% overall, according to CoinGecko.
Cetus Confirms Protocol Paused Amid Security Incident
The Cetus team confirmed the exploit on X (formerly Twitter), announcing an emergency pause on smart contracts:
“We’ve detected an abnormal event on our protocol. As a precaution, our smart contracts have been paused. The team is currently conducting a full investigation. Further updates will follow.”
The incident has sparked widespread concern across the Sui developer and investor communities.
Estimated $200M+ Lost as Attacker Moves to Ethereum
According to on-chain investigators Lookonchain, over $260 million in assets were siphoned from Cetus Protocol. The attacker reportedly swapped the stolen tokens for USDC, then bridged them to Ethereum and converted the funds into ETH. At least $60 million worth of USDC has already been transferred across chains.
Blockchain security firm PeckShield confirmed the breach, also citing a $200+ million figure, and echoed the $60 million USDC bridging claim.
Oracle Exploit or Technical Flaw?
There is growing debate within the crypto community regarding the root cause of the exploit. Some developers argue that the attack stemmed from an oracle malfunction, rather than a direct hack. However, given the scale of the asset outflows and the attacker’s successful exit, many experts are labeling it an oracle manipulation exploit.
