The ability of Sui validators to censor specific addresses in the wake of the Cetus exploit set a precedent that challenges the foundational premise of permissionless blockchains, raising the risk that discretionary censorship may become normalized regardless of justification

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Some users pointed out that while this intervention protected users in this instance, it raises questions about the network’s ability to freeze funds at will, potentially threatening user sovereignty.
Critics argue that the ability to freeze funds on-chain undermines Sui’s claims of being a decentralized blockchain network. Some experts highlight concerns that Sui’s validators, by selectively ignoring addresses holding stolen funds, demonstrate centralized control, contradicting the ethos of blockchain decentralization.

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SUI
Cetus Protocol

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Sui's validator coordination was a concerning sign of centralization

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Sui's validator coordination was a good emergency response

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