Cork Protocol Recovers from $12M wstETH Exploit, Plans Relaunch

2 mins mins

Key Points:

Phil Fogel leads Cork Protocol’s response to $12M wstETH loss.
Protocol suspends operations, investigates with experts.
Community anticipates potential recovery and fund redeployment.

Phil Fogel, co-founder of Cork Protocol, announced efforts to investigate and recover from a $12 million wstETH exploit on May 29th.

This incident underscores ongoing vulnerabilities in DeFi platforms and the crucial role of immediate response in mitigating financial loss and restoring user trust.

Cork Protocol Faces $12M Loss, Launches Recovery Plan

Cork Protocol, led by Phil Fogel, confirmed a $12 million exploit of wstETH on May 29th. The protocol suspended contracts following the incident and launched comprehensive recovery efforts. The investigation involves forensic and security experts alongside relevant agencies, aiming for fund recovery and redeployment.

The primary asset affected was wstETH. Hackers drained the reserves by deploying a counterfeit smart contract, causing significant financial loss and operational challenges for the protocol. The Cork team is conducting an in-depth post-mortem and collaborating with experts to trace funds. Philfog discusses market trends and analysis can give further insights into their approach.

Phil Fogel’s official statements reassured the community, outlining the protocol’s strategic efforts to recover and redeploy. Their transparency and prompt response have been praised by the user base, with security analysts actively supporting the initiative.

Market and Regulatory Reactions Post-Exploit

Did you know? Similar DeFi exploits, like those of Euler Finance, have demonstrated that early-stage recovery efforts can significantly restore market trust and liquidity.

CoinMarketCap reports that Lido wstETH (WSTETH) is priced at $3,241.73, reflecting a 1.57% 24-hour price change. The market cap stands at formatNumber(11765440748.00), showing a 49.81% increase in 30 days. Trading volume decreased by 17.50% to $6,196,347.89.

lido-wsteth-daily-chart — Lido wstETH(WSTETH), daily chart, screenshot on CoinMarketCap at 01:53 UTC on May 29, 2025. *Source: CoinMarketCap*

The Coincu research team suggests heightened regulatory attention to DeFi protocols post-exploit as investors demand tighter security. They highlight that quick action and strong community communication are critical for recovery post-crisis.