Response to the Cetus Incident – Onchain Community Vote

Following a hack that froze funds in two attacker-controlled accounts, Cetus requested a community-led governance vote on Sui to authorize a protocol upgrade for recovery. The vote proposed reclaiming the frozen funds and placing them into a multi-signature trust wallet for redistribution.

Key Ideas

Onchain governance resolves decisively: Validators representing over 90.9% of the network’s stake voted “yes”, ending the vote early and approving the upgrade. The reclaimed funds will be transferred to a 4-of-6 multisig wallet shared by Cetus, OtterSec, and the Sui Foundation, to hold them in trust until they’re returned to affected users.
Sui’s governance in action: This marks a real-world demonstration of decentralized decision-making on the Sui network, with transparent validator voting, staker participation through delegation, and openly published code for the voting contract—underscoring how protocol-level recovery can be community-driven and credibly neutral.