- Cork Protocol faces a $12 million security breach.
- All contracts have been suspended amid ongoing investigations.
- Industry concerns rise as DeFi security issues persist.
Phil Fogel, co-founder of Cork Protocol, announced a $12 million exploit on May 28, 2025, prompting a freeze of all contracts and a thorough investigation.
The exploit underscores the persistent security risks within decentralized finance, increasing industry vigilance and user caution.
The security breach on Cork Protocol resulted in approximately $12 million in losses. The attack exploited a price discrepancy in wrapped staked Ethereum (wstETH), leading to a suspension of all activities on May 28, 2025. Phil Fogel confirmed that Cork Protocol is taking immediate action by freezing smart contracts. An investigation is underway to trace the attack’s origins and assess the situation’s broader market effects on DeFi.
The team is working with security analysts to identify the origin of the attack.
Phil Fogel, Founder, Cork Protocol
The breach has raised concerns across the decentralized finance community, highlighting ongoing vulnerabilities. Cork Protocol had previously secured significant backing from major venture capital firms and facilitated over $563 million in trading this month.
The financial implications for Cork Protocol include a direct asset loss and potential long-term impact on its reputation. Although there is currently no technical breakdown, the protocol’s response includes preventative contract freezes and collaborative efforts with security analysts.
The situation continues to evolve as further details emerge. The investigation’s outcomes may affect both regulatory perspectives and the trust investors place in DeFi solutions. Cork Protocol pledges transparency throughout this recovery process.
