Hackers Slam $12 Million in Wrapped Staked Ethereum Heist!

Bold thieves just smashed their way into a wrapped staked Ethereum contract, swiping tokens valued at a whopping $12 million!

The decentralized finance hotspot, Cork Protocol, got rocked by this savage exploit. On a wild Wednesday, May 28, the security gurus at SlowMist sounded the alarm about a sneaky smart contract flaw that left 3,760 wrapped staked Ethereum (wstETH) tokens ripe for the picking.

"We're diving deep into this potential exploit and slamming the brakes on all contracts. Stay tuned, we'll hit you with the deets ASAP," Cork Protocol declared.

After the bombshell dropped, Cork Protocol fessed up to a "security incident" that slammed the wrapped staked Ethereum and wrapped Ethereum tokens. In response, they threw the kill switch on their smart contract.

But hey, not all's lost! Cork Protocol says the rest of their markets are still standing strong. The crew's on the case, hustling for updates.

What the Heck Went Down with Cork Protocol?

Blockchain security beasts Cyvers spilled the beans: the attacker unleashed a rogue contract from an address funded by 0x4771…762B. They're betting that address is tied to some service provider—think DeFi protocol, exchange, or bridge—that Cork Protocol was rolling with.

In a flash—just 16 minutes later—the dirty deed was done. The attacker swapped the wstETH for Ethereum and bolted. The hot ETH hasn't hit other wallets yet.

Cork Protocol's all about helping users play it safe against token depegging risks, covering everything from wrapped stablecoins to liquid staking and restaking tokens. Their wstETH to weETH trading pair? That's their bread and butter.

These wrapped tokens? They're the keys to unlocking DeFi magic you can't pull off with the OG assets. But, hold up, they also crank up the risk dial, tossing in counterparty drama, smart contract glitches, and prime targets for hacks. If a rug pull hits, that wrapped token could tank faster than its unwrapped twin, leaving users holding the bag.

Cork Protocol's got your back though—users can snag depeg swaps to shield their stash if it dips below the peg. Beyond wstETH to weETH, they're also securitizing wETH to wstETH, sUSDS to USDe, and sUSDe to USDT. It's a wild ride, but they're here to keep you in the game!