Sui Validators Approve Recovery Plan After Cetus Hack

• Lyla Velez
• May 30, 2025

Sui validators have overwhelmingly approved a recovery plan following the Cetus Protocol hack. The decision comes after a community vote, allowing $162 million in assets to be securely managed for user reimbursement.

The recovery initiative signifies a pivotal moment for Sui’s governance, highlighting adeptness in crisis response and reinforcing market stability.

Sui validators have voted to approve a recovery plan following a major exploit affecting the Cetus Protocol. $162 million in frozen assets will be moved to a multi-sig wallet for potential return. This move demonstrates the community’s commitment to decentralized governance and asset security. Facilitating this recovery process is the Sui Foundation, with the Cetus Protocol heavily involved as the directly affected party. “Validators representing 90.9% of stake have said ‘yes’ in the onchain community vote, and the vote has concluded early. With this result, the impacted funds will be moved to a multi-sig wallet and held in trust until they can be returned to users according to the plan led by Cetus.” source

The hack’s immediate consequences for the Cetus Protocol and the broader market were substantial. Yet, the decisive action of reallocating frozen assets underscores the Sui community’s resilience. Financial markets responded positively to the decisive governance displayed by Sui, anticipating enhanced stability. The potential for broader implications on DeFi governance structures is evident. This event may set a standard in how decentralized systems manage protocol-level crises. Proactive governance can indeed influence future financial and technological frameworks across blockchain networks. The successful validator-led recovery initiative could prompt regulatory discussions about decentralization and asset security.