Cetus Protocol Enters Recovery Phase Following Successful Fund Transfer and Multisig Implementation

In a pivotal moment for the Cetus ecosystem, the decentralized finance (DeFi) protocol has officially moved into the next stage of its recovery following the successful transfer of previously quarantined funds to a secure multisig wallet. The move comes after an on-chain vote passed earlier this month, signaling unified community support and trust in the recovery plan proposed by Cetus, in partnership with the Sui Foundation and blockchain security firm OtterSec.

Multisig Wallet Transfer Completed

On May 31, 2025, Cetus confirmed via their official Twitter (X) account that the funds previously under quarantine on the Sui network have been securely transferred to a newly established multisig trust wallet. This wallet is jointly managed by three key entities: Cetus Protocol itself, the Sui Foundation, and OtterSec.

Transaction details were publicly disclosed and can be independently verified on SuiVision via the following TXIDs:

• TXID 1
  
• TXID 2
  

The use of a multisig wallet — a standard security measure in the DeFi industry — ensures that no single entity can move funds unilaterally, mitigating the risk of future mismanagement or breaches.

Roadmap Execution Begins in Full Swing

With the funds secured, Cetus is now diving headfirst into its previously outlined recovery roadmap. The comprehensive plan includes three core objectives: upgrading smart contracts, restoring protocol liquidity, and preparing for a full platform relaunch.

“Our team is fully mobilized and working around the clock,” the protocol noted. “We are committed to delivering a safe and complete recovery.”

While the team has not yet provided specific deadlines for each phase, the transparency in their communication and the visible steps taken so far are helping to rebuild community confidence.

Community Engagement: Twitter Space Scheduled for June 2

In a move to maintain transparency and strengthen community trust, Cetus has announced a public Twitter Space scheduled for June 2, 2025 (UTC), where key representatives from Cetus, the Sui Foundation, and OtterSec will address the broader Sui community.

The event aims to walk through the incident that led to the fund quarantine, provide detailed insights into the recovery process, and answer live questions from community members. The exact time of the Twitter Space will be announced shortly, according to the team.

This approach mirrors best practices in crisis communication across the DeFi space — ensuring that users are kept in the loop while allowing the project to demonstrate accountability and resilience.

A Critical Moment for Cetus and the Sui Ecosystem

This turning point is not only significant for Cetus but also for the broader Sui ecosystem. As a prominent DEX (decentralized exchange) on Sui, Cetus plays a crucial role in providing liquidity and facilitating trading pairs across the network. Its return to full functionality is expected to boost confidence in the reliability and robustness of DeFi infrastructure on Sui.

While challenges remain, the coordinated effort between Cetus, the Sui Foundation, and OtterSec represents a maturing DeFi landscape — one that values security, governance, and community involvement.

As the June 2 community discussion approaches, all eyes are on Cetus to see how effectively it can transform its recovery narrative into a case study of resilience in decentralized finance.