Suspected Exploit Hits Cetus Decentralized Exchange
The decentralized exchange Cetus, built on the Sui blockchain, is believed to have been subjected to a massive exploit resulting in a potential loss of over $200 million in digital assets. The suspicions arose when the Web3 researcher known as COMDARE3 shared that users reported an exploit taking place on the Sui-based DEX, Cetus.
COMDARE3, who currently operates under anonymity, revealed the challenges faced by Cetus. He mentioned that several digital assets had lost more than half of their value within just 24 hours, offering market data screenshots as supporting evidence. This alarming plunge in asset value raised eyebrows amongst cryptocurrency investors and analysts.
Hacken Confirms Losses Of $63m Value
Hacken, a leading cybersecurity company specializing in blockchain, confirmed through its in-house developed onchain monitoring tool, Extractor, that at least $63 million has been successfully bridged to Ethereum. In addition, 20k ETH was also transferred to a new wallet in one go.
The information was verified by Yehor Rudytsia, a Web3 researcher for Hacken. Rudytsia’s statement confirmed that these funds were indeed withdrawn from Cetus, only strengthening the suspicions of an exploit.
Cetus Processes $2.9 Billion Worth Transactions Amidst Suspected Exploit
Amidst the rising concern and skepticisms, data showed that Cetus had processed transactions worth $2.9 billion on May 22. This was a considerable increase from the $320 million reported just a day earlier, suggesting that this heightened level of activity might be caused by siphoning funds out of the protocol.
An attempt was made to reach out to the Cetus team to clarify the situation. However, no immediate responses were received. A representative from the Sui team refused to comment about ongoing circumstances, further adding to the uncertainty.
Drop in Cetus Asset Values
Certain tokens like Lombard Staked BTC (LBTC) and Axolcoin (AXOL) went through severe depreciation in their values as a probable consequence of the suspected Cetus exploit. Shockingly, the top 15 losers lost over three-quarters of their price overnight. As of now, the Sui-based money market Scallop has paused all borrowing on its protocol, waiting for the turbulence to settle.
Suspected Exploiter’s Profile Identified
Even as the DEX struggled to stabilize the situation, the alleged exploiter’s address surfaced, possessing approximately $52 million worth Sui tokens, $4.9 million Haedal Staked SUI, over $19.5 million Toilet (TOILET), almost $19.5 million wrapped USDT, and several other assets.
An incident on the protocol was confirmed by the official Cetus profile, and its smart contract was paused for ensuring additional safety along with an investigation that was put underway. However, while the Cetus team called the incident merely a bug, the timing raises serious questions necessitating further investigations.
Concerns Raised Over Project’s Transparency
The supposedly ‘insignificant bug’ has not only caused havoc in the crypto market but also raised credibility concerns over the transparency of the project. Both blockchain analysts and compliance firms have expressed their concerns and reservations about the issue.
Referring to statements made by the Cetus team members on Discord, a representative from AMLBot remarked that the incident’s timing raises questions. Not only this, but data service provider Onchain Lens also posted that the attacker took control of all SUI-denominated pools, exploiting over $200M and starting to move USDC]
As investigations continue and the dust begins to settle, this suspected exploit will undoubtedly serve as a harsh reminder to the world of blockchain technology and decentralized finance about the risks and volatility inherent in the field.
