A significant security breach has affected the Cetus Protocol, resulting in a reported theft of $230 million from its funds. The incident occurred on May 22, 2025, and involved an exploit of an overflow vulnerability. The immediate response included halting smart contracts, recovering $162 million of stolen funds, and initiating an investigation alongside security firm SlowMist. SlowMist’s analysis revealed the breach was caused by a vulnerability in the protocol’s code. [
This attack has had a major impact on the cryptocurrency market, causing price drops across affected assets. The incident also led to a decline in liquidity pools within the SUI ecosystem. Cetus Protocol is currently addressing the situation and offering a $5 million bounty for the attacker.
In response to this security breach, experts are raising concerns about regulatory scrutiny of protocols and potential changes to smart contract security standards. This incident further highlights the need for robust security systems within the DeFi space.
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