Sui Network Steps in to Compensate Cetus Losses in Full After $223M Exploit
These funds apply only to cover the bridged assets, and are separate from the frozen funds subject to an onchain community vote.
'Using our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain if the locked funds are recovered through the upcoming community vote,' Cetus said in an X post.
'This includes a critical loan from the Sui Foundation, making a 100% recovery for all affected users possible.'
The recovery plan hinges partly on the outcome of a pending on-chain governance proposal, which would authorize the use of frozen funds to complete user reimbursements.
'These are extraordinary measures taken to protect the Sui community,' the Sui Foundation said in a statement, adding that a 'full recovery is possible' with the community's support.
The exploit of Cetus last week involved an attacker manipulating spoof tokens, such as BULLA, to exploit flawed price curves and reserve logic, allowing them to drain SUI, USDC, and other real assets from liquidity pools without depositing equivalent value.
At the time, over $162 million in stolen tokens were frozen on-chain, while the remainder were bridged out through multiple paths. The attacker's wallet (which is still active) was last seen holding over 12.9 million SUI, with additional assets likely swapped or obfuscated across networks.
In response, Cetus paused its smart contracts and initiated an investigation, while its governance token, CETUS, dropped nearly 40% at the time. Trading activity across Sui's DeFi ecosystem slowed amid liquidity concerns and broader scrutiny of protocol safety.
Now, with the new secured loan from the Sui Foundation, Cetus says it is in a position to begin reimbursing users immediately.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
42 minutes ago
- Yahoo
How Crypto's Most Boring Token Became the U.S. Treasury's $200 Billion Lifeline – And Why It Could Hit $2 Trillion
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Major banks are scrambling to launch stablecoins as digital tokens emerge as an unexpected lifeline for U.S. Treasury markets The crypto world's most boring investment might just become Wall Street's most important player. Stablecoins—digital tokens pegged to the dollar—are quietly positioning themselves as a crucial buyer of U.S. government debt, potentially absorbing hundreds of billions in Treasury securities over the next decade. Stablecoins now account for roughly $200 billion in Treasury and repo market investments—about 80% of the $256 billion stablecoin market, according to Reuters. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . At last week's Money Fund Symposium in Boston, State Street Global Advisors CEO Yie-Hsin Hung highlighted the growing influence of stablecoins across traditional financial markets.' 'But here's the kicker,' Hung noted. 'Stablecoins are growing fast, and most likely, will outpace the growth of Treasury supply.' The mechanics are surprisingly straightforward. When Circle, the company behind USDC stablecoin, sees demand for its tokens increase by $10 billion, it must purchase $10 billion in Treasuries to maintain the crucial 1:1 peg to the dollar. It's a simple equation that's creating a powerful feedback loop. This timing couldn't be better for the U.S. Treasury. With expectations of up to $1 trillion in new government debt issuance by year-end, participants are desperately searching for reliable buyers. Enter stablecoins: a growing class of investors that must buy Treasuries by design, not choice. 'If they do indeed squeeze this supply balloon on Treasuries and rely on the front end of the curve for debt issuance, we think that one of the justifications is that all this demand coming from stablecoins gives Treasury Secretary Scott Bessent cover to make that shift to the shorter end,' explained Mark Cabana, head of U.S. rates strategy at BofA Securities. Trending: New to crypto? on Coinbase. The demand from traditional finance is reaching fever pitch. Adam Ackermann, head of portfolio management at Paxos, said he's fielding calls from the world's largest banks with an urgent message: 'I need a stablecoin in eight weeks. How can we get one?' This corporate rush intensified after the U.S. Senate passed the GENIUS Act recently—landmark legislation creating a regulatory framework for stablecoins. While the Republican-controlled House still needs to pass its version before reaching President Doanld Trump's desk, the bill's advancement has unleashed pent-up institutional demand. Standard Chartered estimates the stablecoin market could explode from today's $256 billion to $2 trillion by 2028 if the legislation becomes law. That would represent roughly $1.6 trillion in additional Treasury demand—a massive injection into government debt markets. But not everyone is celebrating this digital gold rush. Ackermann, despite being in the business of issuing stablecoins, is sounding a cautionary note: 'What's somewhat concerning is we're just at this fever pitch right now. It's great for the industry, but we need to start to put some guardrails on things.' His concern reflects broader questions about what happens when crypto markets experience their inevitable volatility. If stablecoin demand suddenly contracts, will Treasury markets face an equally dramatic reduction in buying pressure? There's also the concentration risk. Currently, just two companies—Circle and Tether—dominate the stablecoin landscape. A regulatory crackdown or operational issue at either could ripple through Treasury markets in unpredictable investors, this trend presents both opportunities and considerations: Treasury Impact: Increased stablecoin demand could provide a floor for short-term Treasury prices, potentially benefiting money market funds and short-duration bond strategies. Crypto Correlation: The deeper integration between stablecoins and Treasury markets could create new transmission channels between crypto volatility and traditional fixed income. Regulatory Risk: The entire thesis depends on favorable regulation. Any setbacks to stablecoin legislation could dramatically alter the demand dynamics. Long-term Sustainability: While $200 billion represents less than 2% of the overall Treasury market today, BofA's Cabana expects stablecoins to become 'an incremental demand source over the next three to five, certainly 10 years.' The convergence of crypto innovation and traditional finance is creating unexpected solutions to age-old problems. Stablecoins may have started as a niche crypto product, but they're evolving into a critical piece of U.S. debt market infrastructure. Whether this represents a sustainable solution or a new source of systemic risk remains to be seen. What's certain is that the boring world of government debt just got a lot more interesting—and potentially a lot more volatile. Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Image: Shutterstock This article How Crypto's Most Boring Token Became the U.S. Treasury's $200 Billion Lifeline – And Why It Could Hit $2 Trillion originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Solana Treasury Firm Expands SOL Holdings and Staking Strategy With $2.7M Purchase
Solana's on-chain fundamentals gained a major vote of confidence on Thursday as Florida-based DeFi Development Corp (DFDV) announced it had expanded its SOL SOL treasury by acquiring 17,760 additional tokens. The purchase, valued at approximately $2.72 million, was executed at an average price of $153.10 per token. This move aligns with the company's stated long-term strategy of compounding SOL holdings and staking rewards. Following this acquisition, DeFi Dev Corp's total holdings reached 640,585 SOL and SOL equivalents, representing a U.S. dollar value of around $98.1 million. Based on the company's last reported total of 14,740,779 shares outstanding, the current SOL-per-share (SPS) stands at 0.042, or roughly $6.65 per share using the day's price data. All newly acquired SOL will be staked with a variety of validators, including DeFi Dev Corp's own infrastructure on the Solana network. This approach enables the company to earn native yield through staking rewards and validator fees, while directly contributing to Solana's decentralization and operational resilience. DeFi Dev Corp has positioned itself as the first public company to make Solana the centerpiece of its treasury strategy. In addition to accumulating and staking SOL, it is also actively engaged in decentralized finance (DeFi) opportunities and ecosystem participation. The company's treasury strategy offers shareholders direct economic exposure to the token while supporting Solana's application-layer the time of writing, SOL was trading at around $150.75, down 1.6% in the past 24-hour period, according to CoinDesk Research's technical analysis model. Meanwhile, the broader crypto market, as gauged by the CoinDesk 20 Index (CD20), is up 0.13% in the same period. Technical Analysis Highlights SOL ranged from $156.28 to $150.04 between July 2 17:00 and July 3 16:00, reflecting 4.15% volatility. Strong resistance formed at $156 during early trading hours, with above-average volume triggering a reversal. Price dropped below key support at $152 during the 12:00–15:00 period, settling at $150.44. In the final hour (15:16–16:15 UTC), SOL declined 0.63% from $151.85 to $150.89. A sharp selloff occurred at 15:35 UTC, with price dropping to $150.44 on high volume (213.6K). Support emerged at $150.35 with increasing buy-side activity and a modest recovery in the final minutes. Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
Yahoo
2 hours ago
- Yahoo
Sui Reclaims $3 After Week-Long Rally Sparked by Lion Group's Treasury Plans
Sui (SUI) is trading at $3, up about 4% in the past 24 hours, as the token continues to rally following an announcement by Lion Group Holding Ltd. (LGHL) that it intends to acquire SUI tokens as part of a broader $600 million crypto treasury strategy. The strategy was announced on June 26, triggering a rally in the price of the token, which is currently up nearly 15% over the past 7 days. SUI experienced a significant bullish breakout over the past 24 hour period, according to CoinDesk Research's technical analysis model. The token established a strong support level at $2.87 during early hours on Thursday, before surging dramatically with high volume. Sui's network has emerged as Solana's (SOL) primary challenger in the Layer-1 blockchain space, recording remarkable 54% developer growth over two years while most crypto ecosystems face significant developer attrition, according to a report from Electric Capital. The network's token is outperforming the broader crypto market as measured by the CoinDesk 20 Index, which rose about 5% over the same period. Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
