Sui Foundation Facilitates Community Vote to Recover Cetus Hack Funds
Luisa Crawford May 29, 2025 03:46
The Sui Foundation is enabling a community-driven vote to recover funds frozen after a recent hack on Cetus. The vote will determine if a protocol upgrade should proceed.
The Sui Foundation has announced its decision to facilitate a community-driven vote to address the recent security breach experienced by Cetus, a decentralized finance platform. This initiative seeks to determine whether a protocol upgrade should be implemented to recover funds frozen in hacker-controlled accounts.
Cetus Hack and Recovery Proposal
Following the hack that impacted Cetus, the platform has proposed a community vote to reclaim the stolen assets. According to the Sui Foundation, the vote will engage Sui validators and stakers to decide on a protocol upgrade aimed at transferring the frozen funds to a trusted wallet. This upgrade is part of a broader recovery strategy that involves using Cetus's treasury and securing a loan from the Sui Foundation.
Voting Process and Participation
Set to commence on May 27, 2025, at 1 PM PST, the vote will remain open for up to seven days. The voting process is designed to be transparent, utilizing a smart contract on the Sui blockchain to track and measure the voting stake. Validators can cast their votes as "yes," "no," or "abstain," with outcomes weighted by the stake they represent, excluding the Sui Foundation's stake to ensure neutrality.
The proposal requires more than 50% of the total stake to participate, with a majority "yes" vote needed for approval. If the vote is conclusive before the seven-day period ends, it may be concluded early.
Implementation of the Protocol Upgrade
If approved, the protocol upgrade will allow a specific address to act on behalf of the hacker addresses for two transactions, facilitating the recovery of the funds. These transactions will be crafted and publicized once the recovery address is finalized. The recovered assets will be held in a multi-signature wallet controlled by Cetus, the Sui Foundation, and OtterSec, a trusted auditor within the Sui community.
Community Involvement and Future Steps
The Sui Foundation encourages all Sui holders and stakers to participate by delegating their stake to validators that align with their preferences. Major blockchain explorers, including SuiScan and Space and Time, will provide platforms for monitoring the vote's progress. The vote represents a critical step in the broader effort to restore the affected accounts and fortify the platform's security.
The outcome of this vote will set a precedent for community involvement in governance decisions, illustrating the decentralized nature of blockchain networks like Sui.
Image source: Shutterstock