Cetus, Sui Criticized For Centralization After Stolen Funds Frozen

Cetus and the Sui Basis are dealing with criticism after validators froze a big portion of the $223 million that was stolen through the Cetus hack on Could 22, elevating centralization considerations.

Cetus and the Sui Basis introduced that validators had frozen a majority of the stolen belongings. In keeping with the Cetus group, $163 million of the $223 million was frozen by validators and ecosystem companions on the identical day because the incident.

Nevertheless, the transfer to freeze the funds was criticized, with a number of Web3 group members saying it “undermines the rules of decentralization.”

“Sui validators are actively censoring transactions throughout the blockchain,” wrote one consumer on X, echoing comparable posts by group members.

SUI validators are actively censoring transactions throughout the blockchain.
This fully undermines the rules of decentralization and transforms the community into nothing greater than a centralized, permissioned database.

— Dave (@ItsDave_ADA) Could 22, 2025

One other consumer by the title of Steve Bowyer additionally stated that “many Internet initiatives backed by VCs” appear to “lean closely on centralization, regardless of borrowing Bitcoin’s ethos.” 

Safety Agency Pinpoints Predominant Trigger Of The Cetus Hack

Blockchain safety firm Dedaub pinpointed the foundation explanation for the Cetus hack that noticed the decentralized trade platform drained of $223 million inside a 24-hour interval.

In keeping with the safety agency’s Could 23 report, the hackers exploited a flaw in essentially the most important bits (MSB) verify. 

That “allowed them so as to add large liquidity positions with only one unit of token enter, subsequently draining swimming pools collectively containing tons of of thousands and thousands of {dollars} value of tokens,” the agency wrote of their report. 

SUI Worth Struggles Proceed

Because the Cetus hack, SUI’s market capitalization has dropped from $13.907 billion previous to the incident to round $11.67 billion on Could 25, in keeping with CoinMarketCap knowledge. This was after the crypto’s value additionally dropped over 2% within the final week and recorded one other minor loss prior to now 24 hours.

SUI’s market cap has since recovered to round $12.09 billion. Nevertheless, the mission was not too long ago overtaken by Hyperliquid (HYPE). As such, HYPE is now the eleventh largest crypto by market cap with its valuation of round $12.85 billion. 

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