Phil Fogel Reacts to Cork Protocol $12M Hack

Phil Fogel, co-founder of Cork Protocol, has suspended all contracts following a $12 million security breach on May 28, 2025. The breach involved the theft of wrapped staked Ethereum (wstETH) from the DeFi platform.

Cork Protocol’s security breach highlights potential vulnerabilities in rapidly evolving DeFi landscapes, raising concerns about risk management in decentralized finance.

Cork Protocol, co-founded by Phil Fogel, experienced a breach resulting in $12 million stolen in wstETH. The incident was followed by the suspension of contracts and an official investigation into the exploitation of their DeFi platform.

Fogel and team have engaged blockchain security experts to trace the breach and protect their users. With backing from a16z Crypto and other investors, the pressure is on to manage fallout from the breach swiftly and efficiently.

The financial impact extended across the DeFi ecosystem, with over $23.8 million in TVL affected. Despite the attack, Cork Protocol’s trading volume reached $563 million, highlighting ongoing market reliance on decentralized risk hedging.

Historically, similar breaches have leveraged malicious contracts. Analysts continue scrutinizing blockchain transactions for irregular behaviors, while raising red flags over wstETH’s market vulnerabilities, evident in its premium over standard ETH.

Experts acknowledge the need for advanced security measures in DeFi, underscoring risks linked to de-pegging events and smart contract vulnerabilities. Cork Protocol’s incident stresses the importance of stringent protocols safeguarding digital assets in volatile markets.

“We are working with blockchain security analysts to map the origin of the attack.” – Phil Fogel, Co-founder, Cork Protocol