Sui DEX Cetus suffers massive liquidity drain, team denies alleged hack

Cetus Protocol, a key decentralized exchange and liquidity provider on the Sui blockchain, suffered severe disruption in the early hours of Thursday after a massive outflow of funds triggered panic across the Sui DeFi ecosystem.

Initial reports from users and on-chain data suggest that over $200 million in liquidity has been drained from Cetus pools, prompting widespread concerns about a major exploit.

Trading functionality on the platform has stopped working, while liquidity across various token pairs has depleted. While $SUI prices remain stable on centralized exchanges, several liquidity pool tokens on Cetus have dropped by up to 80%.

In a statement issued shortly after the incident surfaced, the Cetus team said it had paused its smart contract as a precautionary measure following the detection of an anomaly in the protocol. The team confirmed that an investigation was underway and pledged to provide further updates as soon as more details become available.

https://twitter.com/CetusProtocol/status/1925515662346404024?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer

This is a developing story. We’ll give an update as we learn more.