Cetus Hack on Sui Network: What Happened and Why Did the Price of SUI Drop Sharply

Cetus Protocol is the largest decentralized exchange (DEX) on the Sui blockchain, providing capital-efficient trading through centralized liquidity pools. On May 22, 2025, Cetus was exploited for $260 million in one of the largest DeFi attacks of the year. The attacker used counterfeit tokens — counterfeit tokens posing as legitimate assets — to manipulate liquidity pools. By exploiting vulnerabilities in token verification, the attacker tricked the protocol into swapping real money for fake money, draining large amounts of liquidity in a matter of minutes. Immediate Reaction of Sui Foundation Sui Network and Sui Foundation quickly responded to the crisis. In collaboration with Inca Digital, they supported a $5 million reward for any information leading to the identification and capture of the attackers. "Our priority remains to protect the community and actively support problem-solving," Sui Network posted on X. So far, the attacker has not responded and no arrests have been made. But the reward is still in effect and the investigation is ongoing.

Why Did the Price of SUI Drop Sharply? After the hack, SUI is currently trading at around $3.68, down about 5.5% in the past 24 hours. The decline reflects shaken investor confidence and new fears about the safety of DeFi, although the underlying infrastructure of Sui remains intact. Key Technical Indicators: SUI is testing the psychological support level at $3.60–$3.50. RSI near 40 indicates moderate downward momentum with the potential for recovery. The surge in trading volume indicates both fear-driven exits and accumulation strategies. Price Prediction for SUI: What Will the Next Price Be? Despite the short-term pain, the long-term fundamentals of SUI remain solid: The ecosystem development is ongoing and supported institutionally. The strong adoption of DeFi - although it is currently under review. Immediate transparency and proactive communication from the Sui Fund. Price increase scenario: If the sentiment stabilizes and solutions emerge, SUI could recover to the range of 4.20–4.50 dollars in the coming weeks. Price drop scenario: If there is no progress in recovering the fund and community skepticism escalates, SUI could drop to $3.20, with $2.80 being a key support level in the long term.

Broader Implications for Sui Although the Sui protocol was not violated, this vulnerability highlights the urgent need in the ecosystem: Better token listing verification on DEX. Mandatory smart contract audits and fraud detection systems. Tighter risk control in liquidity management. The quick response of the Sui Fund, combined with financial support and transparency to the public, can help turn this crisis into a learning opportunity - paving the way for tighter security and greater trust in the long run.