{"id":13799,"date":"2024-02-29T09:46:46","date_gmt":"2024-02-29T09:46:46","guid":{"rendered":"https:\/\/coinengineer.io\/blog\/?p=13799"},"modified":"2024-02-29T08:59:11","modified_gmt":"2024-02-29T08:59:11","slug":"this-token-lost-94-value-due-to-a-flaw-on-the-ethereum-network","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/this-token-lost-94-value-due-to-a-flaw-on-the-ethereum-network\/","title":{"rendered":"This token lost 94% of its value due to a flaw in the Ethereum network!"},"content":{"rendered":"

Shido<\/strong>‘s layer-1 blockchain lost 94% of its token value in just 30 minutes after a vulnerability in its Ethereum-based staking contract.<\/p>\n

A blockchain security firm called PeckShield<\/strong> drew attention to this drop with a post on February 29th. In another post, it was stated that an attacker transferred the blockchain’s Ethereum-based staking contract to another address. The new owner added a hidden function to upgrade the contract and withdraw the staked tokens.<\/p>\n

\n

Hi @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 $SHIDO<\/a>.<\/p>\n

Here are related txs:
\n\u2013 owner\u2026 https:\/\/t.co\/TZ6oMDGwMG<\/a> pic.twitter.com\/VGZtyg9PEf<\/a><\/p>\n

\u2014 PeckShield Inc. (@peckshield) February 29, 2024<\/a><\/p><\/blockquote>\n

PeckShield<\/strong> announced that the attacker withdrew 4.3 billion Shido tokens, almost half of the total token supply in circulation according to CoinGecko<\/strong> data.<\/p>\n

Before the drop, these tokens were worth about $35 million.<\/p>\n

In a post, an on-chain researcher nicknamed ZachXBT stated that he found the attacker’s address and that this address’s cryptocurrencies were first bridged through Layerswap and then transferred from the Arbitrum<\/strong> blockchain.<\/p>\n

\n

So the address was funded via Across on Arbitrum and that was funded via Layerswap by this person’s ENS.<\/p>\n

I think they were hacked as well though bc their assets were suddenly transferred before funding the exploiter. pic.twitter.com\/6Da2ybKuFY<\/a><\/p>\n

\u2014 ZachXBT (@zachxbt) February 29, 2024<\/a><\/p><\/blockquote>\n

According to ZachXBT<\/strong>, the wallet funding the attacker was discovered. However, he also stated that the owner’s assets were transferred suddenly “before the attacker”.<\/p>\n

Shido is a layer-1 proof-of-stake blockchain project that has yet to launch its main network. A post on February 24th stated that the mainnet launch would be announced next week.<\/p>\n

SHIDO is an Ethereum-based ERC-20 token that can be staked to earn an 8% annual return according to the project’s website. Shido did not yet respond to a request about the contract loophole.<\/p>\n

Last year, over 600 crypto-related hacks resulted in a loss of $2.1 billion, representing a nearly 30% decrease compared to 2022. In January of this year, $182.5 million was lost in 30 attacks, according to PeckShield.<\/p>\n

February could also be a big month for those exploiting flaws; $290 million was stolen from PlayDapp, and several million more were lost in various wallet breaches and fraud cases.<\/p>\n

 <\/p>\n

\n

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don\u2019t forget to follow us on our\u00a0Telegram<\/strong>\u00a0 ,<\/a>YouTube<\/strong><\/a>\u00a0and\u00a0Twitter<\/strong><\/a>\u00a0channels for the latest news and updates instantly.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Shido‘s layer-1 blockchain lost 94% of its token value in just 30 minutes after a vulnerability in its Ethereum-based staking contract. A blockchain security firm called PeckShield drew attention to this drop with a post on February 29th. In another post, it was stated that an attacker transferred the blockchain’s Ethereum-based staking contract to another<\/p>\n","protected":false},"author":6,"featured_media":13798,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[106,105],"class_list":["post-13799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-eth","tag-ethereum"],"yoast_head":"\nThis token lost 94% of its value due to a flaw in the Ethereum network! - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Shido's layer-1 blockchain lost 94% of its token value in just 30 minutes after a vulnerability in its Ethereum-based staking contract.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/this-token-lost-94-value-due-to-a-flaw-on-the-ethereum-network\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"This token lost 94% of its value due to a flaw in the Ethereum network! 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