Growing cybersecurity incidents give rise to grave worries in the cryptocurrency community. An estimated $223 million in user funds were lost in a hack on May 22 that occurred on the Cetus DEX and was believed to be caused by a problem with the smart contract code.
The largest decentralised exchange (DEX) and liquidity provider on the network, Cetus Protocol, experienced a $223 million cryptocurrency theft last week. While Cetus issued a $6 million bounty to collect the remaining $60 million in stolen funds, the network managed to freeze $162 million.
Regarding the reason behind the $260 million hack that rocked its ecosystem last week, the network has published an in- depth study. A fault in a math library used by Cetus, rather than a flaw in Sui or Move, was the primary cause of the disaster, according to the post-mortem analysis.
$SUI is a Layer-1 blockchain project, while Move is a programming language for making smart contracts on several blockchain systems.
In addition, the paper noted that the network was built to facilitate safer smart contract development, therefore the team found the first major dApp incident to be "deeply sad."
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They have made the decision to spend an additional $10 million on security measures in order to improve the network's security. This funding will be used by the network for formal verification, bug bounty programmes, and audits. In order to finalise these security techniques, the team also hopes to collaborate with the developer community.
The Cetus team was trying to figure out how to get those money back and give it back to the community. Earlier, the team said they were working with the Sui Foundation and other ecosystem organisations to get the money back. Numerous validators have located the addresses connected to the stolen cash, according to the Sui Foundation, and were halting transactions on those addresses until further notice.
According to the team, the incident represents a coming-of-age experience, which is regrettably something that every significant blockchain has had to deal with. The argument that no programming language or design can stop people from making bugs was another way they backed up their assertion.
The cryptocurrency community had differing opinions about the recovery operations and asset freezing that were coordinated by different platforms, initiatives, and validators in the project's ecosystem.
In order to improve critical code on the network and help developers take the required actions to recover, the Project's team has asked community members to take this occurrence as a lesson and learn from it.
The Cetus attack is the most recent instance of cryptocurrency and Web3. Moreover, cybersecurity is still a big issue in the cryptocurrency space, and many leaders in the field are urging the sector to strengthen its defences and self-regulate to avoid more government scrutiny.
Also read: How to Add SatoshiVM to MetaMask
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