Cetus Protocol Relaunches with Roadmap and Recovery Plan After $223M Exploit
Cetus Protocol, a decentralized exchange built on the Sui network, has relaunched following a $223 million exploit that shook its foundation in late May. In a blog post published June 8, the project unveiled a comprehensive new roadmap aimed at rebuilding trust, enhancing security, and compensating affected users.
CetusProtocol
Central to the relaunch is a revamped compensation plan and a shift toward open-source development. The protocol team confirmed that all affected CLMM (Concentrated Liquidity Market Maker) pools have been restored using a mix of recovered assets, treasury reserves, and a $30 million loan from the Sui Foundation. Liquidity providers can now regain access to their positions, with recovery levels ranging from 85% to 99%, depending on the pool’s individual losses.
To address gaps where losses couldn’t be fully recovered, Cetus has earmarked 15% of its native CETUS token supply for user compensation. Of that, 5% is available immediately, while the remaining 10% will be unlocked monthly over the next year starting June 10. The team emphasized that these tokens are not new issuances, but rather reallocated from unvested team reserves—meaning no inflation will be introduced.
Claims will be linked to LP position NFTs, which will serve as proof of eligibility even after funds are withdrawn.
On the security front, Cetus has rolled out a newly structured white-hat bounty program to encourage community participation in spotting vulnerabilities. The protocol has also completed full audits of its patched code, contract upgrades, and compensation mechanisms. More audits and real-time threat monitoring enhancements are in the pipeline.
The exploit, which took place on May 22, stemmed from a vulnerability in a third-party code library that allowed an attacker to manipulate liquidity pool pricing. Following the breach, Cetus suspended operations and collaborated with Sui validators to freeze and recover assets. A governance vote on May 29 approved the transfer of $162 million in frozen funds to a multisig recovery wallet.
Ongoing legal action is being pursued across several jurisdictions. The attacker, who reportedly rejected a $6 million white-hat offer, is said to be attempting to launder the stolen assets. However, the Cetus team maintains that most of the funds remain traceable and believes recovery and possible arrest are only a matter of time.
If more funds are recovered during the compensation window, affected users may be able to swap their CETUS tokens for USDC. Once that window closes, any remaining assets will be used for token buybacks and funneled into the community treasury.
Despite the proactive measures and transparent relaunch plan, the market response has been subdued. The CETUS token dipped another 7% on the day of the announcement, continuing a downward trend that began shortly after the exploit.