In a move so bold, it’s almost impressive, hackers breached the Cork Protocol on May 28, making off with $12 million in digital assets through the cunning use of a malicious contract exploit. 🍷💸
And… Pause! The Markets Are Frozen
On May 28, as if on cue, hackers slipped through the cracks of the tokenized risk protocol Cork Protocol and snatched up $12 million. Cyvers, the ever-watchful blockchain security services platform, was quick to alert the masses, pointing out that the attackers unleashed their little digital bomb right after deploying a malicious contract. Classic, really.
In the spirit of true investigative journalism, Blockchain Insights ran its analysis and revealed that the hacker’s funds came from an upstream address, which had been replenished by a cheeky little withdrawal from Whitebit’s exchange. After swiping a generous 3,762 wstETH, the hacker didn’t hesitate—he converted a whopping 4,530 ETH. No time to waste when there’s money to be made, eh?
In a show of transparency (or perhaps damage control), Cork Protocol issued a statement confirming the breach and quickly hit the pause button on all its markets. But, hey, at least they acknowledged it. Sort of.
“At 11:23 UTC today, we experienced a security incident that affected the wstETH:weETH market. All other markets have been paused as a precautionary measure. Rest assured, no other markets were impacted. We’re investigating, and updates will follow. Thanks to our partners for their understanding,” Cork Protocol’s statement reads. Oh, the joys of being a victim, right?
Launched in March 2024, Cork Protocol was once seen as the future of decentralized finance (DeFi), allowing users to hedge and trade the risk of “depeg” events for pegged crypto assets. The likes of Andreessen Horowitz and OrangeDAO backed it, and the protocol was hailed as the genius of risk management in the decentralized world. Well, maybe not anymore. Time will tell how this hack affects their future operations—or their shiny reputation. 🤔
Meanwhile, an investigation by Dedaub identified the exchange rate computation as the cause of the breach. Apparently, the attacker “manipulated this by deploying fake tokens,” exploiting the protocol’s fallback logic. Oops, someone didn’t check the fine print! 📉
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2025-05-28 22:57