Shido Crashes 94% Following Attack

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After an exploit on its Ethereum-based staking contract, the token for the Layer-1 blockchain Shido experienced a sharp drop of 94% in just 30 minutes.

This was reported in a February 29 post by blockchain security firm PeckShield, who alerted their followers to the sudden price decline.

It was later explained that the exploit involved the transfer of the Ethereum staking contract to a different address, which was then updated with a hidden function that allowed the attacker to withdraw staked tokens.

According to PeckShield, the attacker was able to withdraw over 4.3 billion Shido tokens, which accounted for nearly half of the circulating token supply at the time.

This amounted to around $35 million in value before the price drop. Further investigation by pseudonymous on-chain researcher ZachXBT revealed that the attacker’s address was initially funded using crypto from cross-chain protocol Layerswap and later from Arbitrum blockchain.

ZachXBT also claimed to have identified the real identity of the wallet owner who initially funded the exploiter, but it appeared that their assets had been transferred before the exploit occurred, indicating that they too had been hacked.