Sui-based decentralized exchange Cetus may be one step closer to recovering funds lost in a recent exploit, pending the outcome of a community governance vote scheduled to end June 3.

Cetus was exploited for over $220 million worth of digital assets on May 22. Shortly after the incident, Cetus managed to freeze $162 million of the funds.

In a May 27 post on X, Sui said Cetus had requested a community vote to approve the recovery of the frozen funds.

“If the community vote is approved, the funds will be recovered from the attacker and held in a multisig trust account until they can be returned to accounts that had positions in Cetus,” the post said.

The vote is part of a broader recovery plan that includes using Cetus’s treasury and securing an emergency loan from the Sui Foundation.

Source: Sui

The ability of Sui validators to freeze the funds has sparked debate within the community, with some users criticizing the centralization risk and others praising the rapid response as a positive step for security.

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Sui (SUI) tokenholders can stake their delegated tokens to a validator that votes in line with their preference.

Sui community votes for frozen Cetus funds. Source: Sui

At the time of writing, 52.9% of validators had voted in favor, while 46.7% have yet to cast their votes, Sui blockchain explorer data showed. 

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Cetus asks for Sui Foundation emergency loan

Cetus has also requested an emergency loan from Sui, along with validator and community support for the return of the stolen funds.

Cetus is now in a position to “fully cover the stolen assets” if the locked funds are recovered through the ongoing community vote.

“This includes a critical loan from the Sui Foundation, making a 100% recovery for all affected users possible,” Cetus said in a May 27 X post.

Source: Cetus

Regardless of the vote’s outcome, Cetus said a recovery process would begin immediately. The protocol plans to publish a detailed plan outlining next steps for affected users.

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Japanese investment company Metaplanet is raising $50 million through a private placement of zero-interest bonds as part of its strategy to increase its Bitcoin exposure. 

In a May 28 announcement, the company said it was raising $50 million through bonds. The bonds are issued in $1.25 million denominations and carry no interest. Investors will not receive regular payments, with any potential profit expected to come from the bonds’ redemption value.

Evo Fund, a Cayman Islands-based investment firm, will be the sole bondholder. The investment company has been Metaplanet’s primary backer for its Bitcoin acquisition strategy, subscribing to multiple rounds of Metaplanet’s zero-interest bonds, providing capital for its Bitcoin (BTC) buys.

The bonds are unsecured and not guaranteed, with neither a bond administrator nor collateral. This reflects the high degree of trust between the two companies. It also shows confidence in BTC’s long-term outlook as Metaplanet continues to increase its holdings. 

Excerpt of Metaplanet’s announcement to issue zero-interest bonds to buy Bitcoin. Source: MetaplanetMetaplanet expects minimal impact on 2025 results

Metaplanet said it expects the issuance to have minimal impact on its 2025 financial results, though it will disclose further developments if needed.

Metaplanet’s push into Bitcoin highlights a growing trend among companies seeking alternatives to fiat-based treasury strategies. 

The move follows Metaplanet’s second-biggest BTC purchase, scooping up 1,004 Bitcoin worth over $100 million. This pushed the company’s Bitcoin holdings to 7,800 BTC, worth over $800 million. According to BitcoinTreasuries.NET, Metaplanet is up by nearly 20% on its Bitcoin investments. 

Metaplanet’s Bitcoin strategy has also given its stock price a boost. On May 27, 10x Research reported that Metaplanet’s stock trades as if its Bitcoin were worth five times its actual price. The research company said investors in the company are “dramatically overpaying for their Bitcoin exposure.”

Related: Bitcoin treasury pivot lifts luxury watchmaker’s stock more than 60%

Bitcoin Treasury strategy attracts criticism

With the rise of Bitcoin treasury companies’ stock prices, getting Bitcoin exposure through corporate wrappers has attracted criticism from well-known investor Jim Chanos. 

At the Sohn Investment Conference in New York, Chanos said he’s selling Strategy stock to buy Bitcoin. Chanos’ move assumes investors are overpaying for BTC exposure through Strategy and others that follow the blueprint. 

The investor’s move assumes that purchasing Bitcoin directly would be more profitable than purchasing stocks for indirect Bitcoin exposure. 

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