According to PeckShield, an attacker managed to gain control of the Ethereum staking contract on the Shido blockchain and transferred billions of Shido tokens.
The token for the Shido blockchain, which is among the first-layer blockchains, experienced a drop of up to 94% within just 30 minutes after its Ethereum staking contract was exploited.
A blockchain security firm, PeckShield, highlighted this drop in its post on February 29th. In a subsequent post, the firm explained that the attacker successfully transferred the Ethereum staking contract to another address with a new owner and then upgraded the contract to include a hidden function allowing the withdrawal of staked tokens.

PeckShield states that the attacker withdrew over 4.3 billion Shido tokens, nearly half of the total circulating supply of almost 9 billion tokens according to CoinGecko data.
Before the value plummeted, these tokens had a value of approximately $35 million.
Pseudonymous on-chain analyst ZachXBT stated that the attacker's address was funded through cryptocurrency initially transferred from the cross-chain protocol Layerswap, and subsequently from the Arbitrum blockchain.

ZachXBT revealed what they believed to be the true identity of the wallet owner funding the attacker, but noted that this entity was likely compromised as "their assets were suddenly transferred prior to funding the attacker."
Shido is a proof-of-stake blockchain that has not yet launched its main network node (mainnet). In its post on February 24th, the company stated that it would announce the launch of the mainnet "next week."
SHIDO is an ERC-20 token based on Ethereum that can be staked on the project's connected decentralized exchange (DEX) to achieve an annual yield of 8%, as stated on the project's website.
Shido did not immediately respond to a request for comment on the contract exploitation.
Last year saw over 600 cryptocurrency-related hacks with total losses amounting to $2.1 billion, representing nearly a 30% decrease from the previous year. According to PeckShield, January of this year saw 30 attacks with total losses of $182.5 million.
February may also be a significantly successful month for attackers, with $290 million stolen from PlayDapp and millions of dollars stolen through various wallet security breaches and phishing scams.
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