Cetus Protocol Relaunches, Restores Over 50% TVL After $220 Million Exploit

Cetus Protocol, a decentralized exchange (DEX) on the Sui blockchain, suffered a $220 million exploit on May 22, 2025, involving a fake token that drained liquidity. In response, the project has committed substantial resources to restore its platform and liquidity pools.

The protocol officially relaunched on June 8, 2025. To replenish liquidity, Cetus recovered assets through an on-chain vote, rebalanced pools, and allocated $7 million from its treasury alongside a $30 million loan from the Sui Foundation. Following these efforts, Cetus has restored approximately 50% of its peak total value locked (TVL), around $120 million, regaining its position as the leading DEX in the Sui ecosystem.

The recovery plan includes compensating affected liquidity providers with cash and future tokens, aiming to restore 85% to 99% of the stolen assets. Additionally, related projects such as Haedal’s HaeVault have also resumed operations. The relaunch marks a critical step in Cetus Protocol’s recovery from the exploit and its continued role in DeFi on the Sui blockchain.

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