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2025

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Cetus $223M Hack Exposes DeFi’s Ongoing Struggle To Balance Security and Decentralization

By
Paul Ugbede Godwin
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0

Following the $223M Cetus Protocol hack on May 22, 2025, caused by a flaw in Cetus’s math library not Sui’s blockchain or Move language, Sui Network allocated $10M to enhance ecosystem security. This includes funding for smart contract audits, expanded bug bounty programs, formal verification tools, and developer collaboration to strengthen decentralized applications (dApps). The initiative aims to shift toward shared accountability and prevent future exploits.

Cetus froze $162M of the stolen funds through swift validator action, with $60M bridged to Ethereum. They offered a $6M white-hat bounty for the return of 20,920 ETH and frozen assets, plus a $5M reward for information leading to the hacker’s identification. Cetus proposed an on-chain community vote involving Sui validators and token holders to decide on unlocking the frozen $162M for user compensation, sparking debate over decentralization due to validator control. The Sui Foundation provided a loan to Cetus to aid full user refunds, pending the vote’s outcome.

The Cetus hack and Sui’s response reveal significant implications for decentralized finance (DeFi) ecosystems, particularly around security, governance, and community trust, while exposing a divide in perspectives on decentralization and fund recovery. Sui’s $10M security fund signals a proactive shift toward bolstering DeFi ecosystem resilience. By investing in audits, bug bounties, and formal verification, Sui aims to address vulnerabilities in dApps like Cetus, which suffered from a math library flaw.

This could set a precedent for other blockchains to prioritize preventive measures over reactive fixes, potentially reducing future exploits. However, the hack underscores persistent risks in DeFi, where even audited protocols (Cetus was audited) can fail due to overlooked bugs. This may push developers to adopt more rigorous testing, like formal verification, though cost and complexity could limit smaller projects.

Governance and Decentralization

The community vote to decide the fate of the $162M in frozen funds highlights the tension between decentralized governance and practical recovery. Validators’ ability to freeze funds demonstrates centralized control within a supposedly decentralized system, raising concerns about power concentration. If validators hold sway over the vote, it could undermine trust in Sui’s decentralization ethos. The vote’s outcome will shape user confidence. A transparent, fair process could strengthen community trust, while perceived manipulation or delays could alienate users and developers, impacting Sui’s reputation.

The Sui Foundation’s loan to Cetus for user refunds mitigates immediate financial harm, but full recovery depends on the vote and the hacker’s response to the $6M bounty. Failure to return funds could lead to partial losses, eroding user trust in Sui-based dApps. The incident may deter new users from DeFi on Sui, as high-profile hacks often amplify perceptions of risk. Conversely, successful fund recovery and enhanced security measures could position Sui as a safer platform, attracting developers and users.

The hack reinforces the need for standardized security practices across DeFi. As exploits remain common (e.g., $1.7B lost to hacks in 2024), protocols may face pressure to adopt advanced tools like invariant testing or AI-driven code analysis, though these are resource-intensive. The bounty approach, offering $6M for fund return and $5M for hacker identification, could normalize white-hat negotiations but risks incentivizing future attacks if hackers perceive low consequences.

The Cetus hack has sparked a divide within the Sui community and broader DeFi space, primarily over governance, decentralization, and recovery strategies. Critics argue that validators’ ability to freeze $162M undermines Sui’s decentralized principles. They see the community vote as a test of whether token holders have real influence or if validators and the Sui Foundation hold de facto control. Some fear this sets a precedent for centralized interventions in crises, clashing with DeFi’s ethos.

Supporters of the freeze argue it was necessary to protect users and recover funds, showcasing the benefits of pragmatic governance. They view validators’ swift action as a strength, arguing that absolute decentralization can hinder effective crisis response. The vote, they claim, balances community input with practical recovery. Advocates for the on-chain vote emphasize that token holders and validators should collectively decide fund allocation, ensuring transparency and fairness. They argue this empowers the community and aligns with DeFi’s democratic ideals.

Others believe waiting for a vote delays justice for affected users. They argue that the Sui Foundation or validators should unilaterally distribute funds (via the loan or frozen assets) to prioritize user refunds, even if it bypasses full community consensus. Some praise Sui’s $10M fund as a forward-thinking move to protect the ecosystem, arguing that shared security resources benefit all dApps. They see it as a model for collective responsibility in DeFi.

Critics contend that individual protocols like Cetus should bear the cost of their failures, as the hack stemmed from their code, not Sui’s blockchain. They worry that ecosystem-wide bailouts could encourage lax development practices. Supporters of the $6M+$5M bounties argue they’re a practical way to recover funds and deter future hacks by incentivizing ethical behavior. They point to past successes, like white-hat interventions in Ethereum hacks.

Opponents warn that offering large bounties risks normalizing hacks, as attackers might expect negotiations rather than prosecution. They argue for stricter measures, like legal action or blacklisting stolen funds, to deter malicious actors. The Cetus hack exposes DeFi’s ongoing struggle to balance security, decentralization, and user trust. Sui’s $10M security fund and the community vote are steps toward resilience and fairness, but they highlight a divide between those prioritizing decentralized ideals and those favoring pragmatic control.

The vote’s outcome and fund recovery will be critical in shaping Sui’s reputation and influencing DeFi governance models. Meanwhile, the incident underscores the need for robust security practices to prevent exploits, as community trust hinges on balancing innovation with safety.

OpenAI To Launch “Sign in with ChatGPT”

By
Ako Tavershima
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At a time where users are skeptical about handing out their data to big tech, OpenAI is launching a Sign-In (in order words ‘track-me’) service which would provide OpenAI identity wide access to user’s activity across the internet.

Signing in using a generic identity provider has been a game changer to onboarding which saves users from creating several accounts on every platform you visit just to grant access to protected resources; but it comes at a cost. The third party provider now has access and wide knowledge to what you service you have signed up to, how many times you use this service and lots more.

Take for instance Google. Google provides an all-round OAuth identity service which several websites owners have incorporated into which allows their visitors to use Google identity to sign in without having to create a new account since Google has an array of widely used services and offers an identity service. 3 out of 5 people you meet on the internet has a google account. Of course Google in turn provides ad-services which in a way tracks your activity across several websites.

With the use of AI, things becomes more lethal. Imagine an AI agent you interact with now no longer only knows what you have been thinking, how much vulnerable you are, but now can tell where you’ve been to and what you performed there. This opens up an all wide tracking opportunity for the agent, which could become a bug in your bed, which raises more privacy concerns for individuals.

OpenAI is exploring ways for users to sign into third-party apps using their ChatGPT accounts. We’re looking for developers interested in integrating this capability into their own apps.

Blockchain Group’s Bitcoin Treasury Strategy Strengthens Its Position As A Crypto Pioneer

By
Paul Ugbede Godwin
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The Blockchain Group, a Paris-based company listed on Euronext Growth Paris (ticker: ALTBG) and recognized as Europe’s first Bitcoin Treasury Company, raised €63.3 million ($72 million) through convertible bond issuances to bolster its Bitcoin holdings. The issuance, executed via its Luxembourg subsidiary, The Blockchain Group Luxembourg SA, aims to acquire approximately 590 additional Bitcoin, increasing its total holdings to around 1,437 BTC. Approximately 95% of the funds will be used for Bitcoin acquisition, with the remaining 5% allocated to operational expenses and management fees.

Key investors include Fulgur Ventures (€55.3 million), Moonlight Capital (€5 million), and UTXO Management (€3 million). The bonds, denominated in Bitcoin and convertible into shares at €3.809, carry a 30% premium over the closing price on May 23, 2025, and have a five-year maturity. This move aligns with the company’s strategy to increase Bitcoin per share, with a long-term goal of acquiring 1% of Bitcoin’s total supply by 2033. The company’s Bitcoin treasury strategy, launched in November 2024, has already driven a 709.8% BTC yield, significantly outpacing Bitcoin’s price performance.

The Blockchain Group’s €63.3 million convertible bond raise to pursue a Bitcoin treasury strategy has significant implications for the company, its investors, and the broader market, while also highlighting a growing divide in corporate approaches to cryptocurrency adoption. Acquiring ~590 additional Bitcoin brings the company’s total to ~1,437 BTC, positioning it as a significant corporate holder. This aligns with their goal of owning 1% of Bitcoin’s total supply (21 million BTC) by 2033, roughly 210,000 BTC, signaling a long-term bet on Bitcoin’s value appreciation.

The company’s 709.8% BTC yield since November 2024 demonstrates a high-return strategy compared to Bitcoin’s price growth. By tying shareholder value to Bitcoin’s performance, the company aims to deliver outsized returns if Bitcoin’s price continues to rise. The bonds, convertible at €3.809 (a 30% premium), incentivize investors to hold long-term, potentially stabilizing the stock price while aligning investor interests with Bitcoin’s performance. The five-year maturity provides flexibility for both the company and bondholders.

The Blockchain Group’s move, following the lead of companies like MicroStrategy, reinforces Bitcoin as a legitimate corporate treasury asset, especially in a high-inflation environment or amid fiat currency devaluation concerns. Backing from Fulgur Ventures, Moonlight Capital, and UTXO Management signals growing institutional confidence in Bitcoin-focused strategies, potentially encouraging other firms to follow suit.

As a Euronext-listed company, this strategy may normalize Bitcoin adoption in Europe, though it could attract scrutiny from regulators wary of crypto’s volatility or speculative nature. Allocating 95% of funds to Bitcoin purchases prioritizes crypto over traditional business operations, which could limit diversification but amplify returns if Bitcoin appreciates. Heavy Bitcoin exposure ties the company’s financial health to a volatile asset, risking significant losses if Bitcoin’s price crashes.

Using only 5% for operational expenses suggests a lean approach, but it may constrain growth in other business areas like blockchain technology development. The Blockchain Group’s strategy highlights a broader divide in corporate approaches to cryptocurrency, particularly Bitcoin. Companies like The Blockchain Group, MicroStrategy, and Tesla (to a lesser extent) view Bitcoin as a hedge against inflation, a store of value, or a high-yield asset.

They prioritize Bitcoin accumulation to diversify treasuries and capitalize on its potential upside. Many corporations remain skeptical, citing Bitcoin’s volatility, regulatory uncertainty, and environmental concerns (e.g., energy-intensive mining). These firms prefer traditional assets like bonds, equities, or cash reserves, viewing crypto as speculative.

The Blockchain Group’s long-term goal (1% of Bitcoin supply by 2033) reflects a deliberate, core business strategy tied to crypto. This contrasts with firms that hold Bitcoin opportunistically, selling during price spikes or using it for PR. Strategic adopters risk overexposure but may gain competitive advantages if Bitcoin’s adoption grows, while opportunistic players face less risk but miss out on long-term gains.

The Blockchain Group’s move as a European firm contrasts with the U.S.-centric Bitcoin treasury trend (e.g., MicroStrategy). Europe’s stricter regulatory eenvironment like MiCA framework may limit similar strategies, creating a divide between regions with varying crypto tolerance. Pro-Bitcoin firms face potential regulatory crackdowns, while conservative firms avoid these risks but may lag in innovation or returns.

The bond issuance appeals to crypto-savvy investors (e.g., Fulgur, UTXO), but traditional shareholders may worry about volatility or dilution from convertible bonds. This creates a divide in investor bases, with some embracing the high-risk, high-reward model and others preferring stability. Bitcoin’s price has risen significantly since 2020, with institutional adoption growing (e.g., ETFs, corporate treasuries). The Blockchain Group’s strategy capitalizes on this but faces risks from market corrections or regulatory shifts.

Persistent inflation and currency devaluation concerns (e.g., Euro, USD) make Bitcoin attractive, but central bank digital currencies (CBDCs) or tighter regulations could challenge its role. The Blockchain Group’s 709.8% BTC yield sets a high bar, but competitors like MicroStrategy (with larger BTC holdings) may overshadow smaller players, creating a divide between market leaders and followers.

The Blockchain Group’s bold Bitcoin treasury strategy strengthens its position as a crypto pioneer but underscores a divide between crypto-forward and traditional corporate strategies. Its success hinges on Bitcoin’s long-term performance and regulatory developments, while the divide reflects broader tensions in how businesses navigate the crypto landscape.

Africa Remittance Landscape: West Africa Leads as Major Recipient, East Africa Drives Mobile Money Adoption

By
Ojukwu Emmanuel
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0

Africa’s remittance landscape remains a vital component of the continent’s economy, driven by the financial contributions of its diaspora.

Remittances account for a significant portion of GDP in several countries, with 18 of 54 African nations relying on them for at least 4% of GDP. In 2022, remittance inflows across the continent totaled hundreds of billions, playing a crucial role in household income, trade, and national economies.

West Africa: A Leading Major Recipient

A report by Oui Capital, reveals that West Africa leads the continent as one of the largest recipients of remittances in Africa, with inbound flows reaching approximately $48 billion in 2022. Nigeria alone accounted for $20 billion, primarily from the U.S., U.K., and Canada. Ghana, Senegal, and Côte d’Ivoire also receive significant inflows, driven by strong migration links to France and other European nations.

Intra-regional remittances are substantial, with corridors such as Côte d’Ivoire – Burkina Faso ($1.5 billion), Ghana – Nigeria ($900 million), and Mali-Senegal ($750 million).

These flows are largely trade-driven, facilitated by informal networks due to high remittance fees averaging 8-10% (IMF, 2023). Interoperability between mobile money and bank-led systems remains a challenge in some areas, despite advancements in financial infrastructure.

While Nigeria and Ghana have stronger bank-led systems that facilitate broader integration, seamless transactions between mobile money and traditional banking channels are still evolving.

East Africa Leads in Mobile Money Adoption

East Africa leads the continent in mobile money adoption, with over 60% of remittance transactions conducted digitally (GSMA, 2023).

The continent accounts for 70% of Africa’s mobile money transaction volume and 42% of its value, despite having only 15% of the continent’s population. Kenya’s M-Pesa, pioneers this with 96% of Kenyan households using mobile money as of 2023. Tanzania, Uganda, and Rwanda follow, with platforms like Tigo Pesa, MTN Mobile Money, and Airtel Money driving growth.

In 2023, East Africa processed over 2 billion mobile money transactions monthly, with Kenya and Tanzania leading. The region’s mobile money accounts grew from 160 million in 2018 to 300 million by 2023.

Outbound remittances from the region are heavily directed toward the Middle East, particularly from Ethiopia ($5.3 billion), Somalia ($2.1 billion), and Kenya ($3.5 billion). These flows support family maintenance and small businesses. However, cross-border payments within East Africa remain constrained by regulatory discrepancies and lack of seamless interoperability, limiting financial inclusion.

Southern Africa is marked by high outbound remittance flows, particularly from South Africa, which remitted $17 billion to neighboring countries in 2022 (Statista, 2023). Zimbabwe alone received $1.9 billion from South Africa, followed by Mozambique ($1.2 billion) and Malawi ($800 million).

Labor migration is the primary driver, with workers in mining, construction, and domestic services regularly sending money home. However, remittance fees remain among the highest in Africa, averaging 12-15% for formal channels (World Bank, 2023), driving reliance on informal networks, which account for nearly 40% of total transfers.

Southern Africa’s remittance landscape is heavily bank-led, with traditional financial institutions playing a dominant role in cross-border transactions. Unlike East Africa, where mobile money has gained widespread adoption, mobile money penetration in Southern Africa is relatively low.

North Africa, led by Egypt ($32 billion), Morocco ($11 billion), and Algeria ($5.1 billion), remains one of the top remittance-receiving regions, fueled by large diaspora communities in Europe (World Bank, 2023). More than 65% of inflows originate from France, Spain, and Italy.

The Middle East is also a significant remittance source, particularly for Egypt, where Saudi Arabia, the UAE, and Kuwait account for over 50% of total remittance inflows (World Bank, 2023). Moroccan and Tunisian migrants working in Gulf states also contribute substantial remittances, though European inflows remain dominant.

In Central Africa, remittance corridors are driven by intra-African migration, with Cameroon receiving $2.8 billion from Chad and the Central African Republic (AfDB, 2023). Over 70% of transactions remain informal due to limited financial infrastructure and high fees exceeding 10% in formal channels.

In this region, financial systems are more fragmented, with heavy reliance on informal networks and limited interoperability between banks and mobile money platforms.

Conclusion

Remittances continue to play a vital economic and social role across Africa, yet the efficiency, affordability, and inclusiveness of cross-border payments vary greatly by region.

Countries that embrace digital innovation, foster interoperability, and reform regulatory frameworks are best positioned to unlock the full potential of remittance flows to drive financial inclusion and economic development.

Tekedia Capital Welcomes Innate, Which building AI brains for General-Purpose Robots

By
Ndubuisi Ekekwe
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0

For most jobs in this age, machines will cause massive disintermediation and, in the process, displace humans even as new roles are created. While the software element is what many are discussing with ChatGPT, Gemini and others heralded at the forefront of this redesign, we cannot forget the implication of what AI systems could do at the kinetic domain. Yes, how can we personalize robots and enable them to serve us across different vistas of what we do daily?

“Robot, go to the fridge and fetch zobo”; the robot which has been stationed in the parlour does, opens the fridge, gets zobo and returns! For that to happen, you have trained it on fetching zobo in that house!

More so, because of the unbounded nature of what we do daily, there is no way anyone can program all the possibilities of what we do daily. So, how do we overcome those “unbounded” possibilities? You simply focus on the brain of the robot and then tell the end users to train the robot, as desired. Simply, with AI, we think a new era in robotics is coming and that one is where engineers focus on building AI brains for general-purpose robots, with affordable embodiments, and the actual training left for end users.

Good People, Tekedia Capital welcomes Innate, a company which is building personal robots for the AI age: “Innate is developing teachable home robots for builders. Our robots act entirely autonomously, and can be taught new behaviors in under 30 minutes.” Indeed, AI will become even more useful in the physical space.

To learn more about Innate, go here https://innate.bot/. To learn more about Tekedia Capital, visit capital.tekedia.com

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