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The vote will close in several days, and an investigation into the cybersecurity compromise is ongoing, according to Lido DAO members.
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The Lido Decentralized Autonomous Organization (DAO), the entity that governs the Lido liquid staking protocol, has initiated an emergency vote to rotate a compromised oracle — a bridge that connects real-world data to blockchain systems.
According to members of the Lido DAO, an address belonging to the Chorus One oracle was compromised, and the Ether (ETH) balance associated with that oracle was drained in an incident still being investigated.
Lido Finance emphasized that the issue is restricted to the Chorus One oracle and is not system-wide. The team also said the problem was not due to a coding problem in any particular blockchain oracle or software.
Chorus One added that the exploit was likely attributable to a hot wallet private key leak but is also setting up a new machine to ensure security moving forward.
The incident highlights the need for robust cybersecurity measures in decentralized finance (DeFi) as the world’s monetary, trade, and business systems move onchain in ever more complex digital systems that have large attack surfaces.
Related: Mobius Token smart contracts on BNB Chain exploited, $2.1M drained
Cybersecurity remains a critical issue for crypto and DeFi
Hacks, cybersecurity exploits, and other malicious attack vectors remain a major problem for crypto. As digital finance expands to encompass more services, attack methods become more sophisticated.
Cybersecurity firm Hacken released a report outlining the damage done by hacks, scams, and cybersecurity exploits in Q1 2025 and found that over $2 billion in crypto was lost due to malicious activity.
The vast majority of the stolen funds were attributed to the $1.4 billion Bybit hack in February 2025, which skewed the findings of the report.
According to the cybersecurity firm, crypto hacks were responsible for $357 million in losses in April 2025, a significant increase from losses incurred in March.
Hacken CEO Dyma Budorin told Cointelegraph at Token2049 that the crypto industry needs to adopt more robust cybersecurity and code auditing measures to stem the tide of hacks and exploits plaguing the asset sector.
Cybersecurity threats in crypto have become so pronounced, particularly from hacking groups associated with the Democratic People’s Republic of North Korea (DPRK), that G7 countries could discuss the impact of the hackers and how to neutralize these threats at the next G7 Summit.
Magazine: Crypto-Sec: Evolve Bank suffers data breach, Turbo Toad enthusiast loses $3.6K
This article first appeared at Cointelegraph.com News
