Shido token plummets 94% as exploiter drains Ethereum staking contract

Shido token plummets 94% as exploiter drains Ethereum staking contract

The token for the layer 1 blockchain Shido dropped as much as 94% in just 30 minutes after suffering an exploit.

Blockchain security firm PeckShield alerted to the drop in a Feb. 29 X post. In a follow-up post, it explained an exploiter managed to transfer the blockchain’s Ethereum staking contract to another address with the new owner then upgrading the contract with a hidden function to withdraw staked tokens.

PeckShield said the attacker had withdrawn over 4.3 billion Shido tokens — nearly half of the almost 9 billion circulating token supply, per CoinGecko data.

Before the price drop, those tokens were worth around $35 million.

X user “Wazz” said the exploiter funded the attack using multiple bridges but couldn’t further track the pilfered funds, warning others not to buy as the attacker still had Shido tokens.

This is a developing story, and further information will be added as it becomes available.