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The issue of security in the Blockchain field continues to be a hot topic. Following a hack attack on the Layer-1 blockchain network Shido’s token on an Ethereum-based staking contract, its value dropped by up to 94% in just 30 minutes. Blockchain security company PeckShield alerted its followers about the drop in a February 29 post.
Shido Network Suffers from a Hack Attack
In a related post, it was revealed that a hacker successfully transferred the Ethereum staking contract to another address along with its new owner and then upgraded the contract with a secret function to withdraw the staked tokens.
PeckShield announced that the attacker withdrew more than 4.3 billion Shido tokens. According to CoinGecko data, this number is almost half of the approximately 9 billion tokens in circulation. Before the price drop, these tokens were worth about 35 million dollars. In a post, blockchain detective ZachXBT said they found that the hacker’s address was funded through crypto assets bridged from the cross-chain protocol Layerswap and then from the Arbitrum ecosystem.
ZachXBT found the real identity of the wallet owner who financed the hacker, but since their assets were suddenly transferred before financing the hacker, they also appeared to have been attacked. Shido is a Layer-1 project supported by proof-of-stake, which has not yet launched its mainnet. The company announced in a February 24 post that it would announce the mainnet launch next week.
Hack Attacks Remain a Persistent Issue
SHIDO token, according to the company’s official website, is an Ethereum-based ERC-20 token that can be staked on the project’s associated decentralized exchange (DEX) to earn an annual return of 8%. The Shido team did not immediately respond to a request for comment on the hack attack.
PeckShield reported that last year there were over 600 crypto-related hack attacks resulting in a loss of $2.1 billion, and this year January saw 30 attacks with a loss of $182.5 million. February could also be a big month for hackers with $290 million stolen from PlayDapp and several million dollars in crypto stolen through various wallet breaches and phishing scams.
