The ability of Sui validators to selectively block transactions raises questions about the network’s long-term credibility as a censorship-resistant platform in the DeFi space.

Opposing arguments

The coordinated emergency response by Cetus, Sui validators, and cybersecurity firm Hacken following the largest DeFi exploit in Sui’s history enabled the recovery of most of the stolen assets and minimized systemic fallout.

Validators on the Sui blockchain successfully froze approximately $162 million in stolen funds following the Cetus protocol hack on May 22, 2025, reducing the impact of the $260 million theft.

The decision by Cetus to pause smart contracts during the $260 million hack was intended to protect user funds and initiate a responsible recovery process, including offering a whitehat agreement to the hacker.

Cetus halted its smart contracts immediately after a $260 million exploit in order to prevent additional fund losses.

Quotes that support claims

Good news for the victims, but if validators, 114 only in total, can freeze wallets when they want, it raises a major question about the network's censorship resistance. Sui is anything but decentralized.

Decentralization is a lie. They’re blocking transactions for the $200 million ‘hack’ that happened on SUI. The mask is now off.

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Supporting arguments

The Sui network has previously been accused of centralization due to high token concentration among founders and the limited number of validators.

The coordinated action by Sui validators to freeze hacker-controlled wallets during the $260 million Cetus exploit has been criticized as fundamentally contradicting the decentralized ethos of blockchain systems.