A significant security breach has struck the Sui network’s Cetus Protocol, resulting in a $260 million theft and widespread disruption to the DeFi ecosystem. The attack leveraged oracle vulnerabilities, causing a cascade of price drops for Sui-based tokens and halting protocol operations. Investigations by the Cetus team and the Sui Foundation are underway to recover funds and address the root cause of the exploit. The incident has sent shockwaves through the cryptocurrency market, with numerous Sui-based tokens experiencing steep declines of up to 90%, according to blockchain analyst LookOnChain. The attacker is actively converting stolen funds into USDC before cross-chaining them to Ethereum for ETH exchange, potentially amounting to around 60 million USDC. This incident highlights the vulnerability of DeFi ecosystems and underscores the need for enhanced security measures, prompting calls for increased regulatory oversight. Authorities are collaborating with industry players to mitigate further damage and implement stricter protocols, while the Cetus team is working to disable exploited pathways to minimize potential losses.