The Lido Decentralized Autonomous Organization (DAO) Has Initiated an Emergency Vote to Rotate a Compromised Oracle

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.

The Lido Decentralized Autonomous Organization (DAO) is holding an emergency vote to rotate a compromised oracle.

The address belonging to the Chorus One oracle was compromised and the Ether (ETH) balance associated with that oracle has been drained, according to members of the Lido DAO.

Lido Finance clarified that the issue pertains to the Chorus One oracle specifically and is not a broader system-wide problem.

The problem was not due to a coding problem in any particular blockchain oracle or software, according to Lido Finance.

Chorus One added that the exploit was likely attributable to a hot wallet private key leak and that it is also setting up a new machine to ensure security moving forward.

The incident underscores the importance of robust cybersecurity measures in decentralized finance (DeFi) as the world's monetary, trade, and business systems move onchain in increasingly complex digital systems with vast attack surfaces.

Related: Mobius Token smart contracts on BNB Chain exploited, $2.1M drained

Cybersecurity remains a pressing concern for crypto and DeFi

Hacks, cybersecurity exploits, and other malicious attack vectors continue to pose a significant problem for crypto. As digital finance expands to encompass more services, the methods of attack are becoming increasingly sophisticated.

Cybersecurity firm Hacken released a report summarizing the damage inflicted by hacks, scams, and cybersecurity exploits in Q1 2025. The firm's analysis revealed that over $2 billion in crypto was stolen as a result of malicious activity.

The vast majority of the stolen funds can be attributed to the $1.4 billion Bybit hack in February 2025, which heavily skewed the findings of the report.

According to the cybersecurity firm, crypto hacks were responsible for $357 million in losses in April 2025, indicating a substantial increase in stolen assets compared to the previous month.

At Token2049, Hacken CEO Dyma Budorin emphasized the urgent need for the crypto industry to adopt more robust cybersecurity and code auditing measures to mitigate the frequency of hacks and exploits plaguing the asset sector.

The prevalence of cybersecurity threats in crypto, particularly those posed by hacking groups with ties to the Democratic People's Republic of North Korea (DPRK), has become so significant that G7 countries may discuss the impact of the hackers and potential strategies for neutralization at the next G7 Summit.

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