Community Consensus Reached on Frozen Funds

Sui network validators have overwhelmingly approved a proposal to return 【$162 million】 in frozen assets to users affected by the May 22 Cetus protocol exploit. The governance vote concluded with 90.9% support, marking a critical milestone in what could become a textbook case of blockchain crisis management.

From Exploit to Recovery Timeline

The decentralized exchange suffered a 【$220 million】 security breach last week, with validators successfully freezing three-quarters of the stolen funds within hours. ——This rapid response sets a new precedent for onchain security interventions—— according to blockchain analysts. The approved plan involves transferring the frozen assets to a Cetus-controlled multisignature wallet through a network upgrade.

Compensation Mechanism Under Development

Cetus developers confirmed a dedicated compensation contract is being audited before deployment. Affected liquidity providers will initially regain access to recovered funds, with remaining losses addressed through the new claims system. The protocol aims to complete full restoration within seven days, leveraging both the recovered funds and emergency reserves from Sui Foundation.

Decentralization Debate Intensifies

The incident has reignited discussions about validator powers in decentralized networks. While some criticize the freeze as overreach, others note the 【90.9%】 approval rate demonstrates community consensus. Interestingly, the decision comes as other chains face similar dilemmas - just last week Cardano addressed treasury management controversies.

Technical Implementation Roadmap

Validators will first execute the wallet transfer upgrade, followed by Cetus' emergency pool reactivation. The protocol emphasized all compensation processes will undergo third-party audits, with a phased rollout planned to ensure system stability. This layered approach mirrors traditional financial crisis protocols adapted for decentralized environments.