Sui validators have passed a major governance proposal to return $162 million in frozen assets to victims of the recent Cetus exploit, enabling a full recovery and restart plan for the decentralised exchange.
Governance Vote Supports User Repayment
In a significant step towards restitution, the Sui community has approved a governance proposal to release $162 million in frozen assets linked to the exploit of decentralised exchange Cetus. The governance vote concluded on 29 May, with an overwhelming 90.9% of Sui validators voting in favour, while 1.5% abstained and 7.2% did not participate, according to the network’s official governance platform.
The approved proposal will allow the funds to be transferred to a multisignature wallet managed in trust until they can be returned to affected users under a plan led by Cetus.
“This result marks an important milestone for user protection in decentralised finance,” Sui said in an X (formerly Twitter) post on 29 May. “The impacted funds will be held in trust and returned according to the recovery roadmap.”
Exploit and Swift Validator Response
On 22 May, Cetus suffered a major security breach, resulting in the loss of over $220 million in digital assets. However, thanks to the swift intervention of Sui validators, approximately $162 million of the stolen assets were frozen shortly after the incident.
This rapid response has sparked debate within the crypto community. While some decentralisation advocates expressed concern over validators’ authority to freeze onchain funds, others praised the move as a proactive and necessary measure in light of the increasing number of exploits across the sector.
The Sui Foundation, alongside the Cetus treasury, is also contributing to the broader recovery plan, which includes an emergency loan to support affected users and ensure platform continuity.
Cetus Outlines Recovery and Restart Plan
Following the successful vote, Cetus released a statement expressing gratitude for the community’s quick action and shared its roadmap for recovery. The first step involves Sui validators implementing a network upgrade to transfer the frozen assets to the multisignature wallet.

Sui community passes vote for frozen Cetus funds. Source: Sui
Once completed, Cetus will begin upgrades to its emergency recovery pool and restore full protocol data.
“Cetus is aiming to complete its full recovery and restart in approximately one week,” the protocol said in a 29 May post. “A dedicated compensation contract is also under development and will undergo auditor review before being deployed.”
Liquidity Providers to Regain Access
Upon the successful restart of the protocol, all liquidity providers in the affected pools will regain access to their recovered assets. Any remaining losses that cannot be directly recovered will be claimable through the forthcoming compensation contract.
This comprehensive approach aims to ensure that all impacted users are made whole, with minimal disruption to the platform’s long-term functionality.
A Turning Point in Onchain Governance?
The Sui community’s decisive action in the aftermath of the Cetus exploit may serve as a precedent for future onchain responses to decentralised finance breaches. While questions about the balance between decentralisation and emergency intervention remain, the swift recovery plan and community support have demonstrated a strong commitment to user protection.
As Cetus prepares to resume operations within the coming week, the crypto industry will be watching closely to see how this incident shapes future governance decisions and responses to onchain threats.