Cetus Offers Bounty, Sparks Decentralization Debate
The Sui network is grappling with a high-profile hack, prompting a $6 million bounty offer from Cetus, a Sui-native decentralized exchange (DEX), and raising concerns about the network’s commitment to decentralization.
On May 22, Cetus was exploited for over $220 million in cryptocurrency. While the exchange swiftly froze $162 million of the stolen funds, the remaining $58 million remains at large. In an effort to recover the stolen assets, Cetus has offered a substantial white hat bounty of up to $6 million for the exploiter to return the stolen funds, including 20,920 Ether (ETH), worth over $55 million.
“In exchange, you can keep 2,324 ETH ($6M) as a bounty, and we will consider the matter closed and will not pursue any further legal, intelligence, or public action,” Cetus stated in a message embedded within a blockchain transaction. However, the exchange has warned that it will “escalate with full legal and intelligence resources” if the stolen assets are moved or sent to cryptocurrency mixers.
Sui Network’s Response Raises Concerns
Meanwhile, the Sui team’s response to the hack has sparked heated debate within the crypto community. GitHub activity reveals that the team considered implementing an emergency whitelist function that would allow certain transactions to bypass security checks, potentially enabling them to reclaim funds linked to the hack.
“It appears that the Sui team asked every validator to deploy patched code so they could take away @CetusProtocol hacker’s $160 million via an unsigned tx,” noted Chaofan Shou, a software engineer at Solayer Labs. However, an unnamed Sui engineer informed Shou that “validators held off deploying this and currently they are only denying tx that involves hacker’s objects.”
This move has drawn criticism from decentralization advocates who argue that the ability to override transactions contradicts the core principles of a decentralized, permissionless network. The ability to selectively bypass security measures can be seen as a centralized power that undermines the very foundation of blockchain technology.
Different Perspectives on Decentralization
While some argue that the Sui team’s actions represent a troubling shift towards centralization, others see it as a necessary response to a real-world crisis. They contend that decentralization isn’t about inaction in the face of harm but about the ability of the community to act collectively and responsibly to protect its interests.
“This is what real world decentralization looks like. Not just powerless, but responsive and aligned with the community,” stated pseudonymous crypto sleuth Matteo, adding that decentralization “isn’t about standing by while people get hurt, it’s about the power to act together, without needing permission.”
The Cetus hack and the subsequent debate surrounding the Sui team’s response highlight the ongoing tension between decentralization and security in the cryptocurrency space. As the industry evolves, finding the right balance between these two crucial aspects will remain a key challenge for developers and communities alike.
