The biggest blow came on May 22, when Cetus, a decentralized exchange, was compromised. Hackers exploited a flaw in the “most significant bits” (MSB) check, manipulating liquidity parameters and creating disproportionately large positions, according to cybersecurity firm Dedaub.

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In a partial win for the ecosystem, Cetus and the Sui Network managed to freeze $157 million, representing about 71% of the stolen assets.

DeFi Platforms Remain Under Siege

The second-largest incident in May targeted the Cork Protocol, resulting in a $12 million loss. Attackers stole approximately 3,761 Wrapped Staked Ether (wstETH) and quickly converted it to ETH.

Other major breaches included:

• A suspected North Korea-linked $5.2 million hack
• An MBU token exploit worth $2.2 million
• A MapleStory Universe vulnerability that led to a $1.2 million loss

Amid growing pressure, the crypto industry is boosting its defense posture. On May 31, Cointelegraph reported that BitMEX’s security team identified operational gaps within the Lazarus Group, a state-sponsored North Korean hacker unit. The counter-operation exposed key infrastructure elements like IP addresses, databases, and tracking algorithms.

Despite the dip in May, earlier months were worse. In Q1 2025 alone, hackers stole over $1.63 billion, with Bybit’s February breach accounting for $1.53 billion — one of the most severe crypto thefts in history.

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According to analysis by blockchain security firm Cyvers, the attacker managed to withdraw a total of 3,761.87 wstETH using a malicious smart contract. So far, the stolen funds have only been swapped for ETH and have not yet been dispersed across multiple wallets, which marks a slight deviation from typical on-chain attack behavior.

Phil Fogel, founder of Cork Protocol, confirmed the incident via social platform X, stating: “We have identified a potential exploit in Cork Protocol and have paused all contracts. We are conducting a full investigation into the matter.”

Next-Gen DeFi Model Under Threat

Launched in March, Cork Protocol introduced a new approach to the DeFi space by allowing speculation on the difference between an asset’s intended value and its market price. This model made it possible to trade financial risks linked to depeg events.

The platform had secured backing from notable investors such as a16z Crypto, OrangeDAO, and Steakhouse Financial in September 2024. It was also accepted into the CSX Fall 2024 cohort of a16z Crypto.

This incident once again highlights how security vulnerabilities remain a major challenge in the DeFi sector and emphasizes the importance of reinforcing innovative protocols with robust protective measures.

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