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Cetus releases a security incident report and is formulating LP compensation and recovery plans.
Gate News bot message, Cetus officially released a recent security incident report stating that on May 22, its CLMM liquidity pool was attacked by smart contracts. The attacker exploited vulnerabilities in the open source library and overflow check defects, implementing the attack by lowering the pool price, building a position at a high price, injecting inflated liquidity, and repeatedly withdrawing assets.
Currently, Cetus has frozen two wallet addresses of the attacker on Sui, which contain most of the stolen funds, while the remaining funds have been cross-chain transferred by the attacker to Ethereum.
Cetus is conducting a multi-party review with the Sui security team and auditing institutions, while also working on formulating LP compensation and recovery plans, and seeking on-chain voting support from validators. Additionally, the Cetus official has issued a white hat ultimatum to the attackers.