Blockchain security firm releases Cetus hack post-mortem report
Dedaub's post-mortem report on the Cetus decentralized exchange hack identified the exploit as a manipulation of liquidity parameters in the automated market maker (AMM), which bypassed a code overflow check. Hackers exploited a flaw in the most significant bits (MSB) check, allowing them to create large liquidity positions with minimal token input, draining pools worth hundreds of millions of dollars. The hack occurred on May 22, resulting in $223 million in user losses. Sui network validators froze $163 million of the stolen assets on the same day. This response faced criticism from decentralization advocates, who argued that it undermined blockchain principles and led to centralization. Concerns were raised about the industry's need for safeguards before regulatory intervention.
