Sui-based decentralized exchange (DEX) Cetus is grappling with the aftermath of a massive $220 million exploit by offering a $6 million white hat bounty to the perpetrator, while the Sui Network itself is under fire for considering emergency actions that critics say undermine decentralization.
The exploit occurred on May 22, when the DEX was targeted in one of the largest crypto hacks this year. Cetus quickly responded by freezing approximately $162 million of the stolen assets, which included 20,920 Ether (ETH), worth over $55 million.
In an unusual move to resolve the crisis without further legal action, Cetus embedded a message directly on the blockchain offering the hacker a deal: return the stolen assets, and keep 2,324 ETH (approximately $6 million) as a white hat bounty. “We will consider the matter closed and will not pursue any further legal, intelligence, or public action,” the message stated. However, Cetus warned that it would escalate the issue if any of the funds were laundered or moved to crypto mixers.
White hat bounties are typically offered to ethical hackers who expose vulnerabilities, but in this case, Cetus is extending the olive branch to an attacker in hopes of recovering the funds and avoiding further disruption.
Amid the incident, controversy erupted over Sui Network’s internal discussions on how to respond. GitHub activity revealed that the Sui team considered implementing an emergency whitelist function, a measure that would allow certain transactions to bypass usual security checks in order to seize funds linked to the hack.
According to Solayer Labs engineer Chaofan Shou, the Sui team urged validators to deploy patched code that would allow them to recover $160 million in stolen assets via an unsigned transaction. Shou noted that validators ultimately refrained from enacting the override, instead choosing to block only transactions associated with the hacker’s wallet objects.
This approach sparked backlash among decentralization advocates. Critics argue that even considering such intervention contradicts the core principle of a permissionless, decentralized blockchain.
However, not everyone viewed the response as a centralization overreach. Pseudonymous crypto analyst Matteo defended the move, stating, Decentralization isn’t about standing by while people get hurt, it’s about the power to act together, without needing permission.
The Cetus attack follows a sharp rise in crypto-related hacks. April saw 15 major incidents totaling $90 million in stolen digital assets—up 124% from the $41 million recorded in March. The industry is still reeling from a record-breaking $1.4 billion hack of the Bybit exchange in February 2025.
