Sui vote on $162M Cetus funds ignites decentralization debate in DeFi
A $200 million-plus exploit targeting Cetus, a decentralized exchange on the Sui network, has reignited debate over decentralization in blockchain protocols after Sui validators collectively froze $162 million of the stolen funds.
Some decentralization advocates called foul, criticizing Sui validators’ ability to pause fund transfers on the blockchain as a sign of centralization. Other investors applauded the rapid response and coordination against the attackers.
Industry watchers are now waiting for Cetus to initiate its recovery roadmap after the Sui governance vote for returning the frozen $162 million was passed on May 29.
Sui community passes vote to repay $162 million to Cetus exploit victims
Sui validators approved a governance proposal to return $162 million in frozen assets linked to a recent exploit of the decentralized exchange Cetus, marking a key step toward full user repayment.
Cetus was exploited for over $220 million worth of digital assets on May 22, but validators managed to freeze $162 million of the funds shortly after the incident.
In a governance vote concluded on May 29, Sui validators passed the recovery proposal with 90.9% voting in favor, 1.5% abstaining and 7.2% not participating, according to the network’s official governance page.
“With this result, the impacted funds will be moved to a multisig wallet and held in trust until they can be returned to users according to the plan led by Cetus,” Sui said in a May 29 X post.
The decision follows debate within the crypto community over the role of validators in freezing onchain funds.
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No more ETH dumps? Ethereum Foundation turns to DeFi for cash
The Ethereum Foundation (EF) has borrowed $2 million in GHO, a decentralized stablecoin developed by Aave, in a move signaling deeper engagement with decentralized finance (DeFi) strategies.
In a May 29 X post, Aave founder Stani Kulechov said the foundation borrowed $2 million in GHO tokens. “The EF is not only supplying ETH to Aave, but also borrowing from Aave,” Kulechov wrote, describing the development as “the full DeFi circle.”
GHO is a decentralized, overcollateralized stablecoin native to the Aave Protocol. Unlike centralized stablecoins, GHO is governed by Aave’s decentralized autonomous organization (DAO), which oversees interest rates, collateral requirements and facilitator selection.
The move highlights the EF’s growing engagement with the DeFi ecosystem, moving toward more sophisticated treasury strategies.
The foundation did not immediately respond to a request for comment.
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Hyperliquid trader James Wynn goes “all-in” on $1.25 billion Bitcoin long
Well-known Hyperliquid trader James Wynn has increased his 40x leverage long Bitcoin bet to $1.25 billion after closing his PEPE position for a $25.2 million profit.
On May 24, Lookonchain reported that Wynn entered an 11,588 BTC position with an average entry price of $108,243 and a liquidation level of $105,180.
The move came hours after Wynn exited his Ether (ETH) and Sui (SUI) longs at a $5.3 million loss. At the time, he used the proceedings to double down on Bitcoin (BTC), increasing his position to 11,070 BTC.
Wynn began his Bitcoin long position with $830 million on May 21, trimming $400 million in profits the same day. By May 22, he ramped the position back up to $1.1 billion, holding high leverage as BTC crossed $110,000 and gained $39 million on paper. He later sold 540 BTC for $60 million, securing a $1.5 million profit.
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Decentralized AI could be “bigger than Bitcoin” — DNA Fund CEO Chris Miglino
Some of blockchain’s earliest adopters are now deeply “entrenching” themselves in decentralized AI, with ecosystems like Bittensor (TAO) emerging as growth engines. These platforms are reshaping traditional venture capital models, enabling the best ideas to organically attract community support, staking and liquidity without the need for institutional gatekeepers.
That was one of the key takeaways from Cointelegraph’s interview with Chris Miglino, the co-founder and CEO of DNA Fund, a digital asset investment firm he runs alongside fellow serial entrepreneurs Brock Peirce and Scott Walker.
DNA Fund manages, among other things, five distinct funds across a range of strategies, such as a high-yield fund, an algorithmic trading fund, an AI compute fund, a liquid token fund and a venture fund — serving both company and investor capital.
Miglino, who hosted Cointelegraph at a DNA House event during the Consensus conference in Toronto, Canada, was particularly excited about the firm’s AI compute fund.
“The biggest thing that we’re working on in the whole ecosystem is our AI compute fund, where we’ve been entrenched into the TAO ecosystem,” said Miglino, referring to Bittensor, a decentralized, open-source machine learning network.
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Decentralizing telecom benefits small businesses and telcos — Web3 exec
Decentralizing telecommunication networks financially benefits small businesses and telecom corporations alike, according to Frank Mong, the chief operating officer of Nova Labs, the founding team behind the Helium wireless decentralized physical infrastructure (DePIN) network.
In an interview with Cointelegraph at Consensus 2025 in Toronto, Mong said that small businesses including bars, restaurants, convenience stores and other local operators can generate revenue by hosting wireless hotspots and expanding network coverage.
Large telecommunication companies and service providers can also tap into the Helium Network’s telemetry to reduce operational costs and expand network coverage in dead zones.
“It costs about $300,000 for a telecom company to stand up one tower; you need one per block for 5G to work effectively,” Mong told Cointelegraph, adding:
“Instead of doing that and making phone plans more expensive, what if anyone with a useful WiFi network shares that WiFi and allows, not just anyone to use it securely, but allows large companies like AT&T to see the telemetry of that network.”
Decentralized physical infrastructure networks continue to be examples of how blockchain technologies can provide real-world value and make existing infrastructure more resilient to outages, disruptions, censorship and critical failure.
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DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.
Popular memecoin Fartcoin (FARTCOIN) fell over 28% as the week’s biggest loser in the top 100, followed by the Pudgy Penguins (PENGU) token, down over 23% on the weekly chart.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
