The governing body of the Lido liquid staking protocol, Lido Decentralized Autonomous Organization (DAO), has enacted an urgent vote to substitute a breached oracle. Oracles serve as the vital link merging real-world data with blockchain networks.
Lido DAO members have stated that an address tied to the Chorus One oracle was infiltrated. The Ether (ETHUSD) balance attached to this oracle was depleted in an event currently under scrutiny. Lido Finance, however, clarified that the problem is limited to the Chorus One oracle and is not a system-wide issue. It also mentioned that the issue does not stem from a coding error in any specific blockchain oracle or software.
Chorus One has inferred that the breach was likely caused by a hot wallet private key leak. Meanwhile, they are installing a new machine to bolster security in the future.
This incident underscores the importance of robust cybersecurity within decentralized finance (DeFi) as the world’s monetary, commerce, and business structures transition onto increasingly sophisticated digital systems with wide attack surfaces.
Despite the growth of digital finance, cybersecurity breaches, hacks, and other malevolent attack techniques persist as a significant issue. According to a report by cybersecurity firm Hacken, more than $2 billion in cryptocurrency was lost to malicious activity in Q1 2025.
A significant portion of these stolen funds resulted from the $1.4 billion Bybit hack in February 2025, which heavily influenced the findings of the report. The firm also stated that crypto hacks were responsible for $357 million in losses in April 2025, a substantial increase from March’s losses.
The CEO of Hacken, Dyma Budorin, asserted that the crypto sector needs to adopt more stringent cybersecurity and code auditing measures to combat the increasing instances of hacks and exploits.
The threat of cyber attacks in the crypto space has become so severe, particularly from hacking groups affiliated with the Democratic People’s Republic of North Korea (DPRK), that the G7 nations may discuss the influence of these hackers and strategies to neutralize these threats at the forthcoming G7 Summit.
