TL;DR
- Cork Protocol, a DeFi platform for trading risks related to pegged assets, was hit by an exploit that led to the theft of 3,762 wstETH, worth over $12 million.
- The malicious contract was deployed on May 28 and exploited a vulnerability in the protocol’s exchange rate calculation system.
- Despite the attack, the crypto community emphasizes that such incidents drive essential improvements in DeFi security architecture.
On May 28, 2025, Cork Protocol was struck by an exploit that lasted less than 17 minutes but was enough for the attacker to drain 3,762 units of wstETH, a tokenized version of staked Ethereum. The vulnerability, identified by firms such as Cyvers, SlowMist, and Lookonchain, was linked to a flaw in the smart contract’s internal exchange rate logic. The attacker issued fake tokens that triggered fallback logic within the protocol, allowing them to exploit default values and siphon off millions.
Once the funds were extracted, they were rapidly swapped for 4,530 ETH through a series of transactions. Unusually, the stolen ETH remains consolidated in a single wallet, rather than being scattered across multiple addresses as typically seen in such attacks. This has sparked speculation within the crypto community: was this a purely financially motivated hack, or was there a deeper technical or political motive? The lack of obfuscation has also made the stolen assets easier to track, increasing the chances of legal intervention or freezing of assets via centralized exchanges.
Major Investors and the Platform’s Outlook
Launched in March 2024, Cork Protocol had carved a niche for itself by introducing a new category in the DeFi space: speculation on asset depegging events. With the support of heavyweight investors like a16z Crypto, OrangeDAO, and Steakhouse Financial, the platform gained notable traction among developers and institutional traders.
Following the breach, Cork Protocol announced via X, the immediate suspension of all contracts to safeguard the community and initiate a full-scale investigation.
Security firm Debaub later stated that the core issue was an exploit of the internal price oracle system using artificially created tokens.
Despite the setback, the crypto community retains an optimistic outlook. These events, though disruptive, are intrinsic to the evolutionary process of decentralized finance. Just as Ethereum and Solana overcame critical vulnerabilities in their early stages to become major players, Cork too has the backing and technical depth to recover stronger.
Resilience is embedded in the crypto ethos, and this incident will be no exception. Rebuilding trust will take transparency, improved code, and a deepened commitment to users.
