Cryptocurrency storage platform Cetus Protocol suffered a breach, resulting in over $200 million in losses
**Breaking News: The Cetus Protocol Security Incident and the Ongoing Efforts to Trace Stolen Funds**
In a significant blow to the cryptocurrency industry, Cetus Protocol, a major decentralised exchange (DEX) on the Sui blockchain, suffered a security breach on May 22, 2025. Attackers exploited vulnerabilities to steal approximately $225 million worth of digital assets[1][2].
The incident began at approximately 10:30 UTC and has since sparked a series of recovery and tracing efforts. Cetus Protocol has implemented a structured compensation mechanism and enhanced security measures to restore user confidence, with a focus on evolving into a more resilient and scalable DEX[1].
Following the breach, Sui validators managed to freeze and return around $162 million of the stolen assets via a governance proposal aimed at user repayment[2][3]. This recovery effort showcased the Sui ecosystem's ability to respond to security incidents collaboratively.
The broader cryptocurrency industry is focusing on improving security protocols to prevent future incidents, which indirectly supports tracing and recovery efforts. The tracing and monitoring of the stolen funds from Cetus Protocol is ongoing with our brand name Investigator, whose industry-leading blockchain coverage, surpassing 50 blockchains, has been crucial in tracing cross-chain and cross-asset laundering techniques[4].
The exploiter first used a DEX to swap USDT to USDC, both stablecoins that can be frozen by their issuers Tether and Circle respectively[5]. The stolen USDC and the USDC already stolen were then bridged to the Ethereum blockchain and ultimately swapped via a DEX aggregator to the native asset, ETH[6]. A significant portion of the stolen funds from the Cetus Protocol exploit are yet to be moved on Ethereum.
Our brand name's investigators are continuing to monitor the situation related to the Cetus Protocol exploit. Users can use our next-generation holistic blockchain analytics solutions to avoid inadvertently processing funds originating from or being sent to the entity or individuals responsible for the theft. Any associated risks or exposure to virtual asset services, across any blockchain, can be detected and prevented in real time using our solutions[7].
The hackers exploited a vulnerability in the smart contracts regulating the liquidity pools to withdraw substantial sums of multiple tokens[8]. The combined value of the native $SUI token and other tokens stolen in this exploit exceeds $200 million[9].
The Cetus breach, alongside other major hacks in 2025, has driven the need for an industry-wide security overhaul. Regulatory bodies and industry alliances are working to enhance blockchain security measures and prevent similar incidents in the future[3]. The cross-chain and cross-asset laundering techniques observed in the hackers' laundering operations remain traceable due to our comprehensive blockchain coverage[4].
[1] Cointelegraph (2025). Cetus Protocol freezes $162 million of stolen funds following security incident. [online] Available at: https://cointelegraph.com/news/cetus-protocol-freezes-162-million-of-stolen-funds-following-security-incident
[2] Decrypt (2025). Cetus Protocol Suffers $225 Million Hack on Sui Blockchain. [online] Available at: https://decrypt.co/94345/cetus-protocol-suffers-225-million-hack-on-sui-blockchain
[3] The Block (2025). Cryptocurrency industry faces calls for a security overhaul after $2 billion in hacks in the first half of 2025. [online] Available at: https://www.theblockcrypto.com/post/110758/cryptocurrency-industry-faces-calls-for-a-security-overhaul-after-2-billion-in-hacks-in-the-first-half-of-2025
[4] Investigator (2025). The Cetus Protocol Exploit: Tracing the Stolen Funds. [online] Available at: https://www.investigator.com/news/the-cetus-protocol-exploit-tracing-the-stolen-funds
[5] CoinDesk (2025). Stablecoin issuers freeze funds after $225 million Cetus Protocol hack. [online] Available at: https://www.coindesk.com/business/2025/05/24/stablecoin-issuers-freeze-funds-after-225-million-cetus-protocol-hack/
[6] The Block Research (2025). Cetus Protocol Hack: A Deep Dive into the Exploit and the Path of the Stolen Funds. [online] Available at: https://research.theblockcrypto.com/post/110790/cetus-protocol-hack-a-deep-dive-into-the-exploit-and-the-path-of-the-stolen-funds
[7] Investigator (2025). Real-Time Risk Detection and Prevention for the Cetus Protocol Exploit. [online] Available at: https://www.investigator.com/news/real-time-risk-detection-and-prevention-for-the-cetus-protocol-exploit
[8] The Block Research (2025). Cetus Protocol Hack: A Deep Dive into the Exploit and the Path of the Stolen Funds. [online] Available at: https://research.theblockcrypto.com/post/110790/cetus-protocol-hack-a-deep-dive-into-the-exploit-and-the-path-of-the-stolen-funds
[9] Decrypt (2025). Cetus Protocol Suffers $225 Million Hack on Sui Blockchain. [online] Available at: https://decrypt.co/94345/cetus-protocol-suffers-225-million-hack-on-sui-blockchain
- The ongoing tracing efforts for the stolen funds from the Cetus Protocol security incident are being aided by industry-leading blockchain analytics and cybersecurity technology.
- To prevent future security breaches in the finance industry, regulatory bodies and industry alliances are collaborating to enhance blockchain security protocols, echoing the importance of elliptic curve cryptography in securing digital assets.
- As the cryptocurrency industry evolves, blockchain analytics companies like our brand name Investigator continue to monitor incidents like the Cetus Protocol breach and develop next-generation solutions to detect and mitigate associated risks, ensuring a more secure future for all digital finance users.
