$12M Vanishes in Crypto Heist Targeting Cork Protocol’s Depeg Market

A major security breach struck decentralized finance platform Cork Protocol on Wednesday, with hackers making off with over $12 million in Ethereum after targeting a specific market related to depeg risk.

 

Cork’s co-founder Phil Fogel confirmed the attack and said that operations across the platform were frozen in response. “There was a security incident affecting the wstETH:weETH market at 11:23 UTC,” the company said in a follow-up statement. “As a precaution, we’ve paused all Cork markets, although there is currently no indication that other markets were affected.”

 

Cork Protocol, based in Delaware, specializes in DeFi instruments that allow users to hedge against so-called “depeg” risk — when a cryptocurrency loses its intended price peg, often due to liquidity stress or external financial shocks. The platform likens its product to credit default swaps in traditional finance.

 

While Cork has not officially confirmed the amount lost or the mechanics of the breach, multiple blockchain analytics firms reported that attackers stole approximately 4,530 ETH, valued at $12.1 million at the time of the heist.

 

Founded with backing from Andreessen Horowitz’s Crypto Startup Accelerator, Cork had drawn attention for addressing a growing pain point in DeFi markets — the unpredictability of price pegs.

 

The incident adds to a growing list of high-profile DeFi breaches in 2025. Just days ago, $223 million was stolen from Cetus, and earlier this year, Bybit suffered a $1.4 billion loss attributed to North Korean hackers.

 

According to data from cybersecurity firm PeckShield, crypto platforms lost more than $3 billion to hacks in 2024 — marking a 15% rise in thefts compared to the year before.

 

With DeFi platforms increasingly under siege, experts say investor confidence hinges on whether protocols can swiftly patch vulnerabilities — and recover from financial damage that now stretches well into the billions.