- The Shido Layer 1 blockchain token experienced a staggering 94% drop within a mere 30 minutes after suffering an Ethereum-based staking contract attack.PeckShield, coming from Blockchain security firm, explained that the attacker successfully moved the blockchain’s Ethereum staking contract to another address. The new owner then upgraded the contract, adding a hidden function to withdraw the staked tokens.
- Last year, over 600 cryptocurrency-related hacking incidents happened, resulting in a $2.1 billion loss. As of January this year, 30 attacks have occurred, leading to a loss of $182.5 million.
On February 29, PeckShield notified through an X post that the Shido token had suffering 94% drop due to an attack.He also stated that the attacker successfully controled the Shido blockchain’s Ethereum staking contract and transferred billions of Shido tokens.
The attack
Following the assailant’s exploitation of the Ethereum staking contract, Shido tokens experienced a 94% decline, resulting in the transfer of billions of Shido tokens. The PeckShield report highlighted that the attacker successfully took control of the Shido blockchain’s Ethereum staking contract, and through upgrading the contract and adding a hidden function, the attacker withdrew over 4.3 billion Shido tokens, nearly half of the total supply.
Shido operates as a Layer 1 proof-of-stake blockchain yet to launch its mainnet. SHIDO is an ERC-20 token based on Ethereum, stakable on the project’s decentralized exchange for an 8% annual yield.
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Current insecurity situation
The article mentions over 600 cryptocurrency-related hacking incidents in 2023, resulting in a $2.1 billion loss, showing a nearly 30% decrease from 2022. In January 2024, 30 attacks occurred, leading to a loss of $182.5 million. February also witnessed a series of thefts, including PlayDapp losing $290 million.
