Cork Protocol Hit by $12M Smart Contract Hack: DeFi Security Under Scrutiny

In a shocking turn of events, Cork Protocol, a decentralized finance (DeFi) platform, has fallen victim to a massive $12 million hack on May 28, 2025. The exploit, believed to be a result of a vulnerability in the platform's smart contract, has sent ripples through the cryptocurrency community, raising fresh concerns about the security of DeFi systems.

According to reports, the attacker exploited a flaw that allowed the manipulation of exchange rates using fake tokens, draining approximately 3,761.87 wstETH (wrapped staked Ethereum), which was swiftly converted to Ethereum (ETH). The stolen funds, worth around $12 million, remain in the attacker's wallet as investigations unfold.

In response to the breach, Cork Protocol has taken immediate action by pausing all contracts and markets to prevent further losses. The team is currently working with cybersecurity experts to analyze the exploit and secure the platform, though no official statement has been released regarding user compensation or recovery plans.

This incident adds to a growing list of DeFi exploits, highlighting the persistent risks in a space often touted for its innovation. Despite undergoing four audits, including two contest-based reviews, the vulnerability in Cork Protocol's system went undetected, sparking debates over the effectiveness of current auditing practices in the blockchain industry.

The hack has also drawn attention on social media platforms like X, where users and analysts are expressing concerns about the broader implications for DeFi security. Many are calling for stricter standards and more robust testing mechanisms to protect investors from such devastating losses.

As the investigation continues, the Cork Protocol hack serves as a stark reminder of the high stakes in the rapidly evolving world of decentralized finance. Industry watchers and investors alike are now waiting to see how the platform will recover and what measures will be implemented to prevent future breaches.