Shido token has dropped 94% due to the exploitation of the Ethereum stock contract
Layer-1 blockchain Shido token plunged as much as 94% in 30 minutes after an exploit on an Ethereum-based stock contract.
Blockchain security firm PeckShield warned its followers of the fallout in a February 29 X post. In a follow-up post, he revealed that an exploit was able to transfer a blockchain's Ethereum contract to another address with a new owner and then modify the contract with a hidden function to extract the captured tokens.
Hi @ShidoGlobal there is an unexpected owner transition to 0x1982. The new owner immediately updated the StakingV4Proxy contract with a hidden exitToken() function. This hidden function is called to extract all $4,353,473,223.864904 SHIDO.
Here are the related txs: Owner… pic.twitter.com/VGZtyg9PEf
– PeckShield Inc. (@peckshield) February 29, 2024
The PeckShield attacker has issued more than 4.3 billion Shido tokens — about half of the circulating token supply of nearly 9 billion, according to CoinGecko data.
Before the price drop, those tokens were worth around $35 million.
On XPost, anonymous on-chain researcher ZackXBT said the exploit address was funded by crypto first from the cross-chain protocol Layerswap and then from the Arbitrum blockchain.
So the address was funded through Across on Arbitrum and supported by Layerswap by this guy ENS.
I think they were also hacked, even if their assets were suddenly transferred before BC could fund the exploiter. pic.twitter.com/6Da2ybKuFY
— ZachXBT (@zachxbt) February 29, 2024
ZachXBT claims that the owner of the wallet that provided the funds to the exploiter was the real identity, but that they also appeared to have been hacked, “before they could give the money to the exploiter, their assets were suddenly transferred.”
Related: Serenity Shield Token Crashes About 99% After Metamask Wallet Breach
Shido is a layer-1 proof of stake blockchain that has not yet launched its network. In a Feb. 24 post, X said it was announcing the main network launch “next week.”
SHIDO, an Ethereum-based ERC-20 token, is a project-linked decentralized currency (DEX) that can be deposited on its website for an 8% annual yield, according to its website.
Shido did not immediately respond to a request for comment on the contract exploitation.
Last year, there were more than 600 crypto-related hacks with a loss of $2.1 billion, a nearly 30% decrease from 2022, and so far this year in January, 30 attacks cost $182.5 million, according to PeckShield.
February could end up being a big month for exploiters as well, with $290 million stolen from PlayDeep and a few more million dollars worth of crypto stolen through various wallets and phishing scams.
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