In a decisive response to one of DeFi’s largest exploits of 2025, Sui Network has announced a comprehensive $10 million security initiative following the devastating Cetus Protocol hack that resulted in $223 million in losses. This strategic move signals a major shift in how layer-1 blockchains approach ecosystem security.
Breaking Down Sui’s Security Response
The newly established security fund will be allocated across three key areas:
- Smart contract audits for both core protocol and popular dApps
- Enhanced bug bounty programs with competitive rewards
- Developer tools focused on preventative security measures
Massive Bounty Program Details
The combined bounty efforts have created an unprecedented $11 million reward pool:
- Cetus Protocol: $6 million white-hat bounty
- Sui Network: Additional $5 million for hacker identification
Governance and Asset Recovery
A contentious governance proposal is currently under consideration, similar to recent developments covered in XRP’s groundbreaking legal framework shift. Token holders are voting on the potential return of frozen assets to affected users.
Market Impact and Recovery
Key market metrics following the incident:
- SUI price declined 15% (From $4.28 to $3.50)
- Current trading price: $3.72 (6% recovery)
- TVL showing early signs of recovery
- DEX volumes remain below pre-hack levels
FAQ Section
How does the Sui security fund compare to other blockchain security initiatives?
The $10 million fund represents one of the largest security-focused initiatives in the DeFi space, surpassing similar programs by competing L1 networks.
What immediate steps should Sui ecosystem developers take?
Developers should prioritize security audits and implement the new developer tools being released as part of this initiative.
How will the bounty program be administered?
The program will be managed through a combination of automated systems and manual review processes, with rewards distributed through smart contracts.
Featured image from Unsplash, chart from TradingView
