Security Violation Warning for Altcoins Listed on Binance and Coinbase: Is the Money Safe?


Lido Finance, one of the largest staking protocols on Ethereum, has announced that the private key belonging to Chorus One, which operates within the oracle infrastructure of this protocol, has been compromised.
After the development process, Lido DAO announced that they will initiate an emergency voting process to replace the related oracle node.
The official statement of the protocol states that despite the security threat, Lido's operations continue uninterrupted and users' funds remain safe. Lido's oracle system is structured as a multi-signature that requires signatures from 5 out of 9 participants. No security breaches have been detected in the eight oracle nodes other than Chorus One.
The DAO declaration includes the following contents:
"Emergency voting notice for Lido DAO: Due to the compromise of the private key of the oracle belonging to Chorus One, the Lido oracle node being referred to will be rotated."
Authorities stated that the leaked key does not directly control the coins and there are no flaws in the oracle software. The oracle system being referred to is responsible for transferring data from the Ethereum consensus layer to the smart contract. This information includes the income of validators and potential penalties.
According to the assessment, even if the entire oracle system is compromised, there will be no significant damage other than the limited deviation in the value of stETH, thanks to the security limits of the system. It is reported that in this incident, the attacker only stole transaction fees amounting to 1.4 ETH and this amount is not directly related to the protocol.
ETH-6.6%
CHO-1.85%
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