Cetus Protocol Hack Exposes DeFi’s Persistent Security Risks

The Cetus Protocol, a major decentralized exchange (DEX) on the Sui blockchain, suffered a multi-million dollar hack in May 2025. The attack exposed vulnerabilities within DeFi, highlighting the need for improved security measures and robust blockchain frameworks to ensure long-term viability of Decentralized Finance. Attackers exploited pricing/oracle flaws within the Cetus system, stealing $160 million in assets before they could be frozen by the Sui Foundation. This incident underscores the challenges faced by young and rapidly developing DeFi ecosystems like Sui, where decentralized systems are inherently susceptible to potential security breaches.