Cetus Protocol announces readiness to compensate stolen assets using its own reserves, while UI Foundation will support the recovery through a liquidity bridge.
More on the Cetus Incident and Recovery Measures
As a reminder, Cetus Protocol recently experienced a major security incident that resulted in the loss of approximately $223 million – an event that understandably shook the position of the entire ecosystem.
However, recovery steps were introduced relatively quickly, including the announcement of full compensation funded directly from Cetus’s own reserves. In addition, Cetus clarified that a conditional recovery is being initiated – meaning user funds will be returned even if the core capital remains frozen at the hacker’s addresses.
A key factor in the process is the SUI Foundation’s stated readiness to provide a loan to support the liquidity bridge needed to restore activity promptly. This will be subject to a vote by the SUI community, and if the distribution plan is approved, the $160 million frozen at the hacker’s addresses could be activated through network consensus. Cetus also emphasized that even if the vote fails, the project will still proceed with fulfilling its obligations to users.
These relatively positive developments triggered an immediate market response – the CETUS token surged by 23% following the announcement, reaching $0.15. It has since seen a slight correction and is currently trading around ~$0.149.
Conclusion
Security incidents continue to happen – it seems like not a single week passes without a reminder of that. Still, what we’re now seeing is how quickly projects respond – at least in their official communications – and how seriously they appear to treat user trust as a critical asset.
