Cork Protocol, a decentralized finance platform, suffered a cyber attack resulting in a loss of $12 million in wrapped staked Ethereum (wstETH).
Details of Cork Protocol Hack
The hack of Cork Protocol on May 28, 2025, led to the loss of $12 million in wstETH. The incident raised concerns about potential vulnerabilities in the rapidly evolving DeFi sector.
Reactions and Safeguards
Cork Protocol co-founder Phil Fogel suspended all contracts following the incident. The team has engaged blockchain security experts to trace the breach and protect users. Under pressure from investors like a16z Crypto, the team aims to manage the fallout swiftly.
Risks in DeFi and the Importance of Security
The financial impact extended across the DeFi ecosystem, with total losses exceeding $23.8 million in TVL. Despite security shortcomings, Cork Protocol's trading volume reached $563 million, indicating ongoing market reliance on decentralized risk hedging. Experts emphasize the need for advanced security measures in DeFi, highlighting risks linked to de-pegging events and smart contract vulnerabilities.
The Cork Protocol incident highlights the importance of stringent security protocols to safeguard digital assets in volatile markets.
