Luganodes' Response to Cetus Recovery Plan

Luganodes has been a committed validator and supporter of Sui and its broader ecosystem. We have closely followed the events surrounding the Cetus hack and its aftermath. The coordinated response by Sui validators effectively mitigated the potential fallout and helped keep avenues open for fund recovery, as outlined by Cetus.

We would like to take this opportunity to reiterate and clarify a few key points:

• Luganodes fully supports the decisions made by the Sui Foundation, the community, and the validator set. We extend our support to the recovery plan initiated by Cetus and believe it represents a necessary and appropriate response.

• Given the scale of the attack and the magnitude of user fund losses, the decisive actions taken were not only justified but essential. While such interventions might raise concerns in broader contexts, in this case, we believe they were both fair and imperative to safeguard users from malicious activity.

• This incident also highlights the strength and agility of the Sui ecosystem. Validators responded swiftly and effectively, while the broader community mobilized to contain the damage. Coordinating and executing an operation of this scale speaks volumes about the resilience and commitment of the teams behind Sui.

• The incident has also left us with key takeaways. As validators, we see the need for clearer governance, standardized intervention procedures, and stricter security expectations. The root cause—a flawed MSB truncation check triggered by a math library invocation—allowed a manipulated liquidity value to bypass overflow detection and drain pool funds. It’s important to clarify that this was not a vulnerability in the Move VM or an exploit of the Sui protocol itself. This incident underscores the importance of formal verification, deeper audit coverage, and strict SSDLC adherence for protocols managing high TVL. A similar technical breakdown was shared by Sui here.

• Sui continues to have our strong support. We believe it holds significant long-term potential. Though this hack was a serious challenge, it is ultimately a momentary setback in Sui’s growth story. We firmly believe that adversity like this teaches us the most—and this event has underscored the robustness and unity of the network.

We have a clear and enduring vision for Sui. The actions taken so far, and those currently under discussion, have our complete backing. At Luganodes, our decisions will always prioritize protecting users. With that in mind, we are ready and look forward to voting in favor of this proposal.

About Luganodes

Luganodes is a world-class, Swiss-operated, non-custodial blockchain infrastructure provider that has rapidly gained recognition in the industry for offering institutional-grade services. It was born out of the Lugano Plan B Program, an initiative driven by Tether and the City of Lugano. Luganodes maintains an exceptional 99.9% uptime with round-the-clock monitoring by SRE experts. With support for 45+ PoS networks, it ranks among the top validators on Polygon, Polkadot, Sui, and Tron. Luganodes prioritizes security and compliance, holding the distinction of being one of the first staking providers to adhere to all SOC 2 Type II, GDPR, and ISO 27001 standards as well as offering Chainproof insurance to institutional clients.

The information herein is for general informational purposes only and does not constitute legal, business, tax, professional, financial, or investment advice. No warranties are made regarding its accuracy, correctness, completeness, or reliability. Luganodes and its affiliates disclaim all liability for any losses or damages arising from reliance on this information. Luganodes is not obligated to update or amend any content. Use of this at your own risk. For any advice, please consult a qualified professional.