TLDR

Sui invests $10 million to upgrade blockchain security after Cetus exploit

Validators freeze $162 million while $60 million gets moved to Ethereum

Sui launches audits and bug bounties to fix vulnerabilities early

Developers get tools and support to build safer dApps on Sui

SUI token drops 10 percent as network shifts focus to long-term resilience

Sui Network has allocated $10 million to strengthen security across its blockchain ecosystem. This move follows a $223 million exploit on Cetus Protocol, a decentralized exchange built on the Sui platform. The network aims to restore trust by supporting preventive measures and enhancing smart contract safety.

We’re kicking this off by committing to spend an additional $10M on security initiatives. These funds will be spent on audits, bug bounty programs, formal verification, and other ways to harden Sui — we’ll figure out the details in collaboration with our developer community.

— Sui (@SuiNetwork) May 26, 2025

The exploit targeted a vulnerability in the AMM logic, causing an arithmetic overflow that enabled unauthorized asset withdrawals. Sui validators froze $162 million worth of stolen funds, while about $60 million was moved to Ethereum.

The team will invest in code audits, formal verification, bug bounty initiatives, and collaborative ecosystem reviews to address security gaps. These actions aim to shift the responsibility from platform-only to shared accountability among developers. The Sui team will also work closely with its developer community to identify high-risk code and secure libraries.

Developer Collaboration and Ecosystem Support

The $10 million fund will support verified open-source libraries, security tooling, and educational initiatives. Developers will receive guidance and support in adopting safer practices when building on Sui. Moreover, the team will prioritize resources for critical dApps and infrastructure components.

Sui emphasized the importance of improving community trust and ensuring application-level security. By increasing audit coverage and rewarding bug reporting, the team hopes to reduce future vulnerabilities. The network views this incident as pivotal to enhance overall ecosystem resilience.

The initiative will promote formal methods that ensure application behavior matches expected outcomes. This includes funding tools that automatically detect logical errors in code. Similarly, Sui plans to scale security training and awareness within its growing ecosystem.

Market Impact and Long-Term Strategy

Sui (SUI) is trading at $3.46 down 3.76% over the last 24 hours. Its market cap is $11.58 billion, and the 24-hour trading volume dropped by 6.52% to $885.19 million, indicating decreased market activity. The token’s circulating supply stands at 3.33 billion out of 10 billion SUI.

SUI token dropped nearly 10% after the Cetus attack, reflecting shaken investor confidence. Though the network infrastructure remained secure, the exploit highlighted gaps in ecosystem-wide diligence. Consequently, the security roadmap now focuses on both platform stability and dApp-level integrity.

While blockchain design and programming languages reduce vulnerabilities, human coding errors remain unavoidable. Therefore, Sui aims to minimize such risks through early detection and systematic oversight. Besides that, real-time monitoring and rapid response protocols will be key priorities going forward.

Sui intends to set a higher industry standard by integrating proactive security mechanisms. The network sees this investment not as damage control but as a long-term reinforcement strategy. Sui’s new approach underlines its commitment to a secure, scalable, and reliable blockchain environment.

 

The post Sui Commits $10M to Boost Blockchain Security After $223M Cetus Hack appeared first on CoinCentral.

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Filed under: News - @ May 26, 2025 11:17 pm