Sui Foundation Steps Back Amid Vote on Cetus Fund Recovery

After the recent Cetus protocol hack, the Sui Foundation has decided to stay out of a crucial vote on whether to recover $162 million in frozen assets. As the Sui network prepares for an on-chain governance decision, the Foundation revealed it will not take sides or vote, leaving the choice entirely to the community. Sui Validators Quickly Freeze Stolen Funds Right after the attack on the Cetus protocol resulted in the loss of $260 million worth of crypto assets, Sui validators acted fast to prevent further damage. They used a tool in the network to block certain wallet addresses, which helped freeze about $162 million that had been stolen. This fast response stopped the attacker from moving more funds off the network, although around $60 million had already been lost before the freeze took effect. Each validator used its settings to ignore transactions linked to the hacker. Notably, these measures are not permanent and can be turned on or off by each validator based on risk analysis or legal needs. Cetus Requests a Protocol Upgrade After the emergency freeze, Cetus asked the Sui community to approve a protocol upgrade. This upgrade would help return the frozen funds to users without changing the blockchain’s history or undoing past transactions. Validators and SUI token holders will participate in the upcoming vote. Cetus has agreed to accept whatever the community decides, noting that no single party should decide alone. Furthermore, Cetus revealed its team is working with security experts, analysis firm Inca Digital, and international law enforcement to track the hacker and recover the missing $60 million. As part of the recovery efforts, the team even offered the attacker a $6 million bounty in hopes of recovering the funds. Sui Foundation Stays Neutral The Sui Foundation has set clear conditions for its involvement. It will not vote on the upgrade and will not influence the decision in any way. Instead, it sees its role as a neutral party that helps somewhat guide the process. The Foundation also expects Cetus to commit publicly to using all available resources to repay affected users in full. This vote will be a major test of the Sui network’s governance model. It will show how a decentralized system can come together during a crisis and how its future may be shaped by its supporters. The post Sui Foundation Steps Back Amid Vote on Cetus Fund Recovery appeared first on TheCoinrise.com .

Source: The Coin Rise