Dear Cetus Community,

We have received many questions and concerns from the community regarding the recent incident, the status of funds, and the roadmap for recovery. To address these in a clear and transparent way, we’ve prepared the following Q&A covering the most important updates and outlining the steps we are actively taking.

What is the current status of user funds? Are they frozen or recoverable?

The affected funds consist of 2 parts, one being within Sui and the other bridged out of the ecosystem mainly held in ETH. The assets within Sui addresses are currently frozen through the efforts of the validators. We are pursuing two possible successful outcomes:

• A successful on-chain vote by the Sui community to authorize a recovery process for the frozen funds.
• Reaching a whitehat agreement or identifying the hacker for legal actions.

As for the portion sitting outside of the ecosystem, the team is proactively in discussion with relevant parties and working towards a solution. Updates will come specifically that addresses the measures that will be taken.

When will the protocol resume full operations?

Data recovery on the Cetus protocol is actively in progress and expected to take several tens of hours.

In the meantime:

• Our aggregator service is already back online, supporting swaps through partners like Phantom and Binance Alpha. The aggregator service does not have definite dependency on the liquidity pools on Cetus and remains routing through other liquidity sources across Sui.
• Cetus CLMM pools that are confirmed to be unaffected throughout this incident will begin to resume operations once accurate position data is fully restored.
• Once data recovery is complete, users in affected pools should be able to view their correct position data again.

As the process of full data recovery is extremely immense and complex, the team has been contributing with utmost priority on this task. We are dedicating all manpower and resources to ensure this recovery can be performed ASAP. We deeply appreciate the understanding and patience from every one of you.

Why hasn’t there been a more detailed official announcement yet?

We fully understand the desire for transparency and more timely communication. The reason we have not released a detailed official announcement yet is because we are actively discussing with the Sui Foundation and other community members  to finalize key details of the recovery. Depending on the stakeholders involved, our communications also require alignment with relevant parties prior to issuance.