Finance Redefined: Shido token’s value plunges by 94% as cyberattacks result in a $200M loss in 2024

Welcome to Finance Redefined, your weekly source of vital decentralized finance (DeFi) insights – a newsletter designed to bring you the most important developments from the previous week.
During a conversation at ETHDenver, Commissioner Hester Pierce of the United States Securities and Exchange Commission (SEC) advocated for greater decentralization and stated that centralization leads to “concentrated risks.”
PeckShield reported that an attacker gained control of the Shido blockchain’s Ethereum staking contract and transferred billions of Shido (SHIDO) tokens.
According to a recent report by Immunefi, Ethereum was the most targeted blockchain by hackers in February 2024, accounting for 85% of the total value lost.
The top 100 DeFi tokens continued their upward trend, and the total value locked in DeFi protocols surpassed $95 billion.
SEC’s Pierce supports increased decentralization in the financial system
The SEC commissioner has expressed support for increased decentralization in the US financial system and a more lenient approach to cryptocurrency regulation and enforcement.
Pierce, also known as “Crypto Mom,” concluded her conversation with CNBC’s MacKenzie Sigalos at the ETHDenver conference on February 29, stating that decentralization is beneficial for the US financial system.
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Hacked funds in 2024 increased by 15.4% compared to the same period in 2023
A research report by blockchain security firm Immunefi revealed that over $200 million worth of cryptocurrency has been lost to hacks and rug pulls in 2024 year-to-date (YTD) across 32 separate incidents.
This represents a 15.4% increase in losses compared to January and February 2023, when $173 million worth of digital assets were stolen.
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Hacker returns stolen funds after $6.4 million exploit on Seneca stablecoin
After exploiting a bug in the approval mechanism of Seneca’s stablecoin protocol, an attacker gained access to at least $6.4 million in digital assets. In response, Seneca offered a 20% bounty to the exploiter.
On February 28, multiple blockchain security firms flagged the exploit on the stablecoin protocol. Companies like CertiK warned users about the issue and advised them to revoke approvals from an address on the Ethereum and Arbitrum networks. Initially, the estimated losses were around $3 million, but it was later discovered that over 1,900 Ether (ETH), worth approximately $6.4 million, had been taken.
Shortly after Seneca’s announcement, the hacker returned approximately 1,537 ETH, valued at around $5.3 million, to the specified wallet address.
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Shido token plummets 94% as exploiter drains Ethereum staking contract
The token for the Shido layer-1 blockchain experienced a 94% drop in just half an hour after an exploit on its Ethereum-based staking contract.
PeckShield, a blockchain security firm, alerted its followers to the drop in a post on February 29. A subsequent post explained that the exploiter transferred the blockchain’s Ethereum staking contract to another address and then upgraded the contract with a hidden function to withdraw staked tokens.
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DeFi market overview
Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a bullish week, with most showing gains on the weekly charts. The total value locked in DeFi protocols surpassed $95 billion for the first time in over a year.


Thank you for reading our recap of the most significant DeFi developments this week. Join us again next Friday for more stories, insights, and education in this rapidly evolving space.