A major security breach has rocked the Sui (CRYPTO: SUI) blockchain ecosystem, as leading decentralized exchange Cetus Protocol suffered a $223 million exploit involving spoofed tokens. Can the SUI price bounce back?
What Happened: Attackers manipulated price oracles to siphon real assets like SUI and USDC from liquidity pools, prompting an emergency halt of smart contracts and a sharp plunge in CETUS's market value.
According to a statement, approximately $162 million of the stolen assets have since been frozen on-chain, but the rest has been laundered through bridge paths and remains unrecovered.
In response, the Sui Foundation issued a critical financial loan to Cetus to help immediately begin compensating users for their losses--particularly those tied to bridged assets.
Governance Vote to Decide Full Recovery
While the initial reimbursement will begin with the foundation's support, the path to full user compensation will depend on a community vote.
The upcoming proposal could authorize the use of frozen funds for recovery efforts, but will require governance approval.
Until then, uncertainty hangs over user redress timelines and protocol trust.
Cetus stated that a combination of its own reserves and the foundation loan places it in a strong position for full recovery, pending the outcome of that vote.
However, the exploit has already sent ripples through Sui's broader DeFi ecosystem.
DEX volumes have slowed, and several protocols have initiated independent security audits.
Read also: SUI Jumps Amid Spot ETF Filing, Network Commits $10M To Security
CETUS Falls 40% as Sentiment Deteriorates
In the wake of the exploit, Cetus' native token CETUS fell by nearly 40% amid a rush for exits and broader investor anxiety across the Sui ecosystem.
The breach has not only reignited concerns around DeFi protocol vulnerabilities, but also raised questions about the audit procedures and oracle designs in emerging chains.
Meanwhile, the foundation's swift response has helped stabilize sentiment to a degree--but damage to trust could take longer to repair.
Trader Notes: SUI at Risk Below $3.50
Sui price dynamics (Source: TradingView)
SUI is showing signs of technical exhaustion after failing to hold above $4.00.
The daily chart shows a double top at $4.25, with the price now hovering near $3.55--just above critical demand at $3.50.
On the 4-hour chart, SUI has re-entered a descending wedge, and the EMAs around $3.59–$3.62 are now acting as overhead resistance.
A break below $3.50 could open downside toward $3.30 or even $3.20. Bulls must reclaim $3.66–$3.70 with volume to regain control.
Join the platform top traders use to stay ahead of the market--before it moves.
Benzinga Edge is 60% off this Memorial Day. Don't miss it.
