Sui Supports Cetus Proposal to Return Frozen Funds Without On-Chain Rollback

The Sui community initiated a seven-day onchain vote to recover frozen funds from the Cetus exploit, with 54 of 56 validators supporting the proposal as of May 27.

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Summary

The Sui community launched a seven-day onchain vote on May 27 to authorize recovery of $223 million in funds frozen after the Cetus protocol exploit. With 54 out of 56 validators voting in favor, the proposal has achieved the required thresholds for approval. If passed, the funds will be transferred to a secure multi-signature wallet controlled by six independent signers, including Cetus representatives, ecosystem stakeholders, and OtterSec. Cetus has committed to full user reimbursement and secured necessary capital including a loan facility from the Sui Foundation. The recovery plan includes independent verification of user claims by OtterSec before fund disbursement.

Terms & Concepts
  • Multi-signature wallet: A cryptocurrency wallet that requires multiple private key signatures to authorize transactions, providing enhanced security through distributed control.
  • Validator Network: A group of nodes responsible for validating and securing blockchain transactions, with authority to implement security measures.
  • CLMM Pools: Concentrated Liquidity Market Maker pools, a type of automated market maker system that provides more efficient liquidity management.