Yesterday, hackers took advantage of a business logic error in the Cetus Protocol, which allowed them to steal $223 million worth of tokens. Cetus Protocol is one of the largest liquidity providers on the Sui blockchain. As a result of the attack, the liquidity pools were almost emptied. The SUI network token itself and the coins operating on it lost up to 90% of their price. Stablecoin USDC is not yet able to return the dollar peg and traded at $0.9996.
Christian Thompson, managing director of the Sui Foundation, noted that the logical error was at the contract level, not in the underlying Move VM or SUI.
The stolen tokens, most of which are SUI and USDC, are being withdrawn by the attackers in portions through the Tornado Cash mixer.
Cetus Protocol reported that they managed to freeze $162 million out of $223 million. Most of the affected funds have been suspended.
In partnership with blockchain forensics company Inca Digital and with the financial support of the Sui Foundation, a $5 million reward has been set for information leading directly to the identification, location, and arrest of the hackers behind the Cetus exploit.
Source: Christian Thompson
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