Lido oracle key compromise — was $23B really at risk?
The post Lido oracle key compromise — was $23B really at risk? appeared on BitcoinEthereumNews.com.
Eyebrows were raised across the crypto community yesterday following Lido’s announcement of a compromised oracle key and the emergency vote to replace it. While some commentators called the incident “alarming,” especially given recent, high-profile hacks, others stressed that fears were overblown. Lido’s message reassured users that it “remains secure and fully operational” whilst underlining that all other signers of the “five of nine” oracle were secure. ⚠️ Emergency Lido DAO vote announcement: rotate single Lido Oracle related to compromised Chorus One oracle private key. Stakers are not affected. The protocol remains secure and fully operational. The oracle system is robust by design, with a 5/9 quorum, and all other… — Lido (@LidoFinance) May 11, 2025 Read more: Radiant Capital’s $50M crypto hack underlines DeFi’s multisig dependence Lido is the decentralized finance (DeFi) sector’s second-largest protocol, worth $23 billion, according to DeFiLlama data. It allows users to deposit ether (ETH) to earn proof-of-stake yields, issuing a liquid wrapper for use elsewhere, e.g., as collateral to borrow other crypto assets. The realization that one of the keyholders to an important part of Lido’s infrastructure led to worries over the security underlying the protocol. This hacker was also ridiculed for blowing their opportunity, giving the game away by draining a mere 1.46 ETH (around $3,800 at the time) sitting in the address to be used for gas fees. Well-organized and long-running multisig compromise efforts have led to enormous heists in recent months. Indeed, the largest ever crypto hack hit ByBit for $1.5 billion in February, and $50 million was stolen from Radiant Capital in October. Both incidents have been linked to North Korea’s Lazarus Group via the TraderTraitor malware used, and an undercover security researcher who blew his own cover in March. Read more: Crypto exchange Bybit hacked for over $1.4 billion Lido…
Filed under: News - @ May 12, 2025 1:28 pm