Sui Network allocates USD $ 10 million to strengthen security after hack against Cetus protocol

USD $ 10 million will be used to finance independent audit programs, errors rewards and strengthening open libraries.

***

• Sui You will invest USD $ 10 million to strengthen security in your ecosystem.
• The attack a Cetus protocol presented a critical vulnerability, although it was not direct fault of Sui.
• The fall of the TVL and the controversy by the on-chain vote revived the debate on governance Blockchain.

Sui Network has announced an investment of USD $ 10 million aimed at strengthening security throughout its ecosystem, in direct response to the attack suffered by Cetus protocol, Decentralized Exchange that operates in its ecosystem Blockchain, which resulted in the theft of USD $ 223 million generating consequences for several tokens.

The events that occurred with Cetus protocol

As we indicated in a previous edition, the exploit originated in a fault within the personalized bookstore of Cetus, which allowed the manipulation of liquidity positions through arithmetic overflow.

Although vulnerability was not directly related to the base code of Sui Not with language Move, The impact on users and the ecosystem reputation was significant.

After the attack, validators of Sui They managed to freeze approximately USD $ 162 million of the committed assets. However, about USD $ 60 million had already been transferred to Ethereum before the intervention. Despite partial containment, the damage was already done.

The Token Sui He experienced a fall close to 10%, while the total locked value (TVL) on the network drastically decreased from USD $ 2.1 billion to USD $ 1.5 billion. This affected both public perception and the confidence of developers and users on the network, also harming the price of other tokens.

An investment to restore trust

In response to the crisis, Sui He has decided to implement a comprehensive security strategy with a collaborative approach. The initiative includes intelligent contract audits, error rewards programs, implementation of formal verification tools and the strengthening of open and verified libraries.

According to the SUI Foundation, The objective is to move from a limited liability at the platform level towards a shared responsibility throughout the ecosystem. This implies working closely with developers and projects to establish good safe development practices.

In addition, resources in security education will be invested, seeking that both new projects and consolidated platforms better understand the technical and operational risks that it implies building on a block chain.

Vote on the network and controversy over governance

The weekend after attack, Sui He faced a new controversy when proposing an on chain vote to determine if frozen funds should be returned to Cetus. Although the Foundation promised to remain neutral, Community members expressed concern about the level of power that the validators have, feeding fears of centralization.

The episode was compared to the historic case of Ethereum and the hacking of The Dao In 2016, when a vote led to a bifurcation of the network. In the case of Sui, The community was divided between those who supported the restitution of the funds and those who defended the principle of immutability of the network Blockchain.

The situation reopened the debate on governance mechanisms in decentralized networks and how to balance user safety with the fundamental principles of crypto ecosystem.

Rewards and new security policies

In parallel to the vote, Cetus offered a reward of USD $ 6 million as “White-Hat Bounty” For any actor who collaborates in the recovery of the funds or provides useful information. The Foundation Sui He complemented this effort with an additional reward of USD $ 5 million for data that leads to identify the attackers.

These movements seek not only to recover stolen assets, but also send a clear message that the ecosystem Sui You are willing to take overwhelming actions in the face of serious threats.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

Subscribe to our newsletter