Shido Network (SHIDO) loses half of its token supply in a massive hack

Blockchain platform Shido Network suffered from a sophisticated security attack on Feb 29. The firm lost SHIDO worth approximately $35 million (more than 4.3 billion tokens), nearly half of the circulating supply following the breach.

Shido Network compromised

Security company PeckShield revealed the incident on X. Follow-up posts show the attacker successfully sent the Ethereum (ETH) staking contract to a different address before altering the contract with a concealed feature to cash out the staked assets.

Hi @ShidoGlobal 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.

Here are related txs:
– owner… https://t.co/TZ6oMDGwMG pic.twitter.com/VGZtyg9PEf

— PeckShield Inc. (@peckshield) February 29, 2024

SHIDO coin is an ETH-based ERC-20 digital token that allows those who stake it on the project’s related DEX to earn 8% annual profits.

PechShield confirmed that the fraudster withdrew over 4.3 billion SHIDO coins, nearly half of the 9 billion assets in circulation. The scammed tokens’s value was approximately $35 million before the sudden price crash.

SHIDO price crashes

While the broad market remains green as Bitcoin (BTC) explores levels beyond $60K, hacking news plunged SHIDO prices.

The alt saw a swift 80% decline minutes following the development. SHIDO has painted its price charts red, hovering at $0.002905 at press time.

Shido announces a bounty

The team has commented on the hack, promising heightened security for the remaining assets while investigations continue. Further, Shido Network has urged the perpetrator to reach out for a bounty.

We currently know how the exploit technically happened. We have secured against any further threats against Shido.

A thorough investigation on the hacker is ongoing, we request the exploiter to contact Shido for a bounty.

All users that staked SHIDO, will have their tokens… pic.twitter.com/8YcmDL1Ldc

— Shido (@ShidoGlobal) February 29, 2024

Meanwhile, the project will refund tokens for those who staked SHIDO.

The Shido Network hack highlights how vulnerable the crypto market is to fraudulent activities, leading to massive losses for participants.

Recently, CBN revealed that scammers used Binance Nigeria to launder assets worth over $26 billion in 2023.

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