Summary of Information on Case #Hack #CetusProtocol System #Sui

1. Summary of the attack:

Due to the mathematical function shift left (<<) causing an overflow, but the system did not detect it, the calculation result returned to a very small number (usually 1). Therefore, the protocol thinks that you have deposited the necessary amount A and grants you a large total liquidity with just a very small deposit.

Source:
Hacker wallet on Sui:

Hacker wallet on Eth:

2. Damage
The hacker successfully transferred 61M to the Ethereum network and purchased $ETH.
The total loss recorded by Cetus is $223M

3. Treatment plan
Right after confirming the information, the Sui Foundation gathered Validators and took a consensus vote to blacklist the hacker's wallet address, rendering that wallet address unable to make transactions.
Fortunately, the Validators unanimously agreed 100%.

(This has also caused controversy regarding decentralization, however, in this case of hacking, I agree)

Some exchanges also lock SUI deposits and withdrawals to avoid panic.

Very smooth combination

4. Assessment
Sui Side:
Bad for the short term, good for the long term.

Short-term creates significant selling pressure, temporarily losing trust, but the root of this hack is in Cetus, not Sui. Sui is not responsible for refunding users.

Sui is a "family chain" so the whole system is working together to support Cetus, moreover CZ has also voiced support for this matter. You can also see that SUI has not lost value at all, there is panic but MM has covered everything.

From Cetus:
Cetus is indeed rich, but compensating users is impossible if the hacker does not pay. (Sui has only just exploded in the last year, and Cetus's profits are not enough to cover ).

The worst-case scenario for Cetus is that it will disappear from the Defi map if it cannot recover the funds from the hacker. Sui support is only limited. Opportunities are arising for other Dexes.

For the affected projects: It would be quite disastrous if the hacker does not pay Cetus. Cetus will not have the money to compensate for the project.

User Side:

Users holding SUI are not significantly affected, and the price of SUI is still supported at the level of $3.8.

5. Action
at that moment, the only option was to transfer all my assets to USDC for safety.

You guys can wait for the results of this hack before taking further action.
Your own wallet is still the most important.