- Over $12 million in wstETH was lost.
- Phil Fogel announced the exploit via Twitter.
- The attacker swiftly converted stolen wstETH to ETH.
Cork Protocol confirmed a security breach on May 28, 2025, affecting its wstETH:weETH market, leading to a suspension of all markets.
The incident highlights pressing concerns regarding smart contract safety in DeFi markets. The stolen assets’ rapid conversion underscores the vulnerability in these environments.
Cork Protocol’s wstETH:weETH market fell victim to a security breach, resulting in the freezing of all its markets. The attacker exploited a malicious smart contract, enabling unauthorized access to 3,761.87 wstETH. Phil Fogel, the founder of Cork Protocol, stated,
“We are investigating a potential exploit on @Corkprotocol and are pausing all contracts. We will report back with more information.”
The external security analytics provider Cyvers assisted in analyzing the event.
The breach resulted in a financial loss exceeding $12 million in wstETH, which had a significant impact on industry liquidity. The incident didn’t affect Cork’s native token, as none exists.
The attacker managed to convert stolen assets swiftly into ETH, raising security concerns about immediate liquidity movements. The on-chain data reveals a significant impact, drawing attention to the need for robust security measures.
Potential financial outcomes could lead to strengthened regulatory measures on smart contracts. This incident emphasizes the necessity for more technologically advanced security protocols to prevent similar breaches.
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