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.

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

PeckShield said the attacker had withdrawn over 4.3 billion Shido tokens — nearly half of the almost 9 billion circulating token supply, per CoinGecko data .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

$2.4M ETH and $1.2M $SHIDO tokens stolen

Wouldn't advise "buying the dip" cuz the exploiter still owns $SHIDO tokens

Exploiter funded from accross bridge which was funded from layerswap bridge https://t.co/FNIcQUjego
couldn't go deeper https://t.co/bbkZXrnw5l pic.twitter.com/eYPhjAjeoa

— Wazz (@WazzCrypto) February 29, 2024

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