Cetus Proposes Onchain Vote to Return All Funds Lost in Exploit - Unchained

After Sui-based decentralized exchange Cetus suffered a $220 million exploit last week, it has now proposed a community vote to potentially return 100% of the frozen funds to affected users.

The protocol’s team proposed returning the funds using its cash and token treasuries, alongside a critical loan from the Sui Foundation, provided that the community approves the return of the locked funds via an upcoming onchain vote.

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Validators and SUI stakers have been encouraged to participate, with the team promising to begin recovery efforts regardless of the vote’s outcome

The proposal has, however, sparked debate within the Sui community about the balance between decentralization and user protection, with some arguing that such an intervention could undermine the network’s decentralized ethos.