Ethereum

Arbitrum

Serenity Shield

ZachXBT

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<p class="is-style-lead">A security breach on the layer-1 blockchain Shido has led to a dramatic drop in its token value, plunging by over 90% within a mere half-hour period.</p>
<p>The incident occurred after an exploit was detected, with blockchain security firm PeckShield first reporting the anomaly on Feb. 29 through a social media post on X.</p>
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   <p lang="en" dir="ltr">Hi <a href="https://twitter.com/ShidoGlobal?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@ShidoGlobal</a> There is a sudden owner transfer to 0x1982. The new owner immediately upgrades the StakingV4Proxy contract with a hidden withdrawToken() function. This hidden function is then called to withdraw all 4,353,473,223.864904 <a href="https://twitter.com/search?q=%24SHIDO&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$SHIDO</a>.<br><br>Here are related txs:<br>– owner… <a href="https://t.co/TZ6oMDGwMG" target="_blank" rel="noopener noreferrer nofollow">https://t.co/TZ6oMDGwMG</a> <a href="https://t.co/VGZtyg9PEf" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/VGZtyg9PEf</a></p>— PeckShield Inc. (@peckshield) <a href="https://twitter.com/peckshield/status/1763055206672048603?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 29, 2024</a>
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<p>Further analysis by PeckShield revealed that the exploit involved the unauthorized transfer of the blockchain’s Ethereum staking contract to a different address. The new owner subsequently modified the contract with a concealed function that facilitated the withdrawal of staked tokens.</p>
<p>According to PeckShield’s findings, the exploiter succeeded in extracting more than 4.3 billion Shido tokens, which accounts for nearly half of the token’s circulating supply of almost 9 billion, as reported by cryptocurrency <a href="https://coinmarketcap.com/currencies/shido-inu-new/" target="_blank" rel="noopener noreferrer nofollow">data </a>aggregator CoinMarketCap. Prior to the exploit, the market value of these tokens was estimated at around $35 million.</p>
<p>On-chain researcher ZachXBT, in a post on X, disclosed the identification of the exploiter’s address. This address had received funding via the cross-chain protocol Layerswap before receiving additional funds from the <a href="https://crypto.news/arbitrum-ones-tvl-surges-to-10b-breaks-new-records/" rel="noopener noreferrer nofollow">Arbitrum</a> blockchain.</p>
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   <p lang="en" dir="ltr">So the address was funded via Across on Arbitrum and that was funded via Layerswap by this persons ENS.<br><br>I think they were hacked as well though bc their assets were suddenly transferred before funding the exploiter. <a href="https://t.co/6Da2ybKuFY" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/6Da2ybKuFY</a></p>— ZachXBT (@zachxbt) <a href="https://twitter.com/zachxbt/status/1763056347468423538?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 29, 2024</a>
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<p>ZachXBT’s investigation also suggested the discovery of the real identity behind the wallet that funded the exploiter. However, it appears that the funding wallet itself had been compromised, as indicated by an unexpected transfer of its assets prior to funding the exploiter.</p>
<p>You might also like: <a href="https://crypto.news/serenity-shield-token-collapses-by-95-after-5-6m-breach/" rel="noopener noreferrer nofollow"> Serenity Shield token collapses by 95% after $5.6m breach </a></p>
<p>Shido, which operates on a proof-of-stake consensus mechanism, has yet to inaugurate its mainnet, with an <a href="https://twitter.com/ShidoGlobal/status/1761492384909566000" target="_blank" rel="noopener noreferrer nofollow">announcement </a>on Feb. 24 hinting at a launch scheduled for the following week.</p>
<p>The SHIDO token, based on the Ethereum ERC-20 standard, offers staking opportunities on its associated decentralized exchange (DEX) with a promised annual yield of 8%.</p>
<p>The breach on Shido is part of a broader trend of crypto-related security incidents. Over the previous year, the cryptocurrency sector experienced more than 600 hacks, resulting in losses <a href="https://crypto.news/crypto-investors-lost-nearly-2b-over-600-incidents-in-2023-data-shows/" rel="noopener noreferrer nofollow">exceeding $2.1 billion</a>. This figure marked a nearly 30% decrease from the losses recorded in 2022. Despite this decline, the current year has already witnessed 30 attacks in January alone, with losses amounting to $182.5 million.</p>
<p>Meanwhile, February is shaping up to be a significant month for security breaches in the crypto space, highlighted by a <a href="https://crypto.news/playdapp-breach-hack-crypto-290-million/" rel="noopener noreferrer nofollow">$290 million</a> theft from PlayDapp, along with several million dollars lost to wallet breaches and <a href="https://crypto.news/fuvo-io-shows-signs-of-phishing-scam-targeting-valuable-crypto-and-nfts/" rel="noopener noreferrer nofollow">phishing scams</a>.</p>
<p>Read more: <a href="https://crypto.news/biggest-crypto-hacks/" rel="noopener noreferrer nofollow"> Major crypto hacks of 2023: how the industry lost over $1 billion in minutes </a></p>

Shido token dives over 90% after Ethereum staking contract exploit

crypto.news

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