Cork Protocol Suspends Operations Following $12 Million Hack

Cork Protocol, a prominent DeFi project, faced a significant setback due to a cyberattack that led to the theft of crypto assets worth $12 million. This breach has prompted the Cork Protocol team to halt all trading activities temporarily as they conduct a thorough investigation into the incident.

The Incident Unfolded

On May 28, 2025, Cork Protocol encountered a security breach that saw hackers exploit vulnerabilities in their smart contracts. Specifically, this attack targeted the wstETH:weETH market. As a precautionary measure, all other markets within Cork have been paused despite being unaffected by this specific exploit.
The hacking event was confirmed by Phil Vogel, founder of Cork Protocol. He assured stakeholders that detailed information about the breach would be shared soon. Notably, security experts from Cyvers and SlowMist were among the first to alert the community about this security incident.

A Closer Look at The Exploit

According to Cyvers’ findings, an exploit was initiated through a malicious contract deployed around 11:23 UTC. Just 16 minutes later, hackers managed to withdraw 3761.87 wstETH and convert it into Ethereum. The experts at MistTrack have successfully traced these transactions to an address where the assets are still held, indicating that laundering attempts have not yet occurred.
The Cork Protocol team pointed out that only the wstETH:weETH market was affected by this malicious contract. However, they opted to suspend operations across all contracts as they delve deeper into understanding and resolving this breach.

The Rise of Cork Protocol

Launched in March 2025, Cork Protocol offers users innovative solutions for tokenizing and trading risks associated with de-pegging events in crypto assets. In September 2024, it secured funding from notable investors including OrangeDAO and IDEO CoLab Ventures among others; however, specific funding details remain undisclosed.
In light of recent events involving data breaches—such as personal information leaks concerning Solana co-founder Raja Gokhale who refused ransom demands—this incident underscores ongoing challenges within cryptocurrency security landscapes.
This attack on Cork Protocol highlights significant vulnerabilities in decentralized finance systems and reiterates calls for enhanced security measures across all blockchain platforms. As investigations continue into this particular exploit’s origins and impacts on future developments within DeFi ecosystems worldwide; stakeholders eagerly await updates from both industry leaders like Cork alongside vigilant cybersecurity firms working tirelessly towards safeguarding digital asset integrity everywhere today!