The Insider developer “pulled the carpet” of the ETH 2.0 SharedStake staking project, which caused the SGT token price to drop by 95%

A developer of the DeFi protocol ETH 2.0 SharedStake has hijacked the governance keys and SGT tokens of the protocol, which has reduced the token price.

SGT price table | Source: Coinmarketcap

When the SGT price plummeted 95%, other team members urged users to withdraw all of their coins and wait for another announcement.

Pull the carpet again

The team warned users to exit the SharedStake liquidity pools and Saddle ETH-vETH2 pool, but said they have identified the person responsible for the breach.

SushiSwap core developer Mudit Gupta tweeted:

“A smart SharedStake developer pulled the carpet. Please withdraw all SGT and liquidity in vETH2 as soon as possible. “

PSA: A rogue developer from SharedStake pulled the carpet. Withdraw all SGT and VETH2 liquidity ASAP. pic.twitter.com/DjmZwQBnGe

– Mudit Gupta (@Mudit__Gupta) June 23, 2021

Saddle is an automated market maker for trading between fixed value cryptocurrencies and it does not appear that its contracts are affected. Nevertheless, vETH2 – a token that generates profits with a 1: 1 price ratio to ETH, is still safe. But the loss of trust in SharedStake has raised concerns that the crash could cause vETH2 to lose its bond.

In the past, some people have given Reminders or warnings about this log. They are suspicious of the anonymity of the developer and the lack of transparency on the project’s website.

Confidence in the protocol deteriorated further when her Twitter account was also suspended.

Some recent rumors

Several members of the DeFi community are trying to decipher the case for themselves, following every step and pointing out possible pending concerns.

Wannable researcher analyzes:

“Smart Timelock was ignored and the hacker tried to take advantage of all other developer contracts. So far, vETH2 is safe, but there are many concerns. “

$ SGT just got robust today before new multisig addresses were added.

h / t to WeebMcgee on Discord for a dive on the subject. Smart timelock was bypassed and hackers also tried to exploit all of the developers’ other vesting contracts. So far, vETH2 is still safe, but there are concerns

1/2 pic.twitter.com/hMQJwHyX39

– wannabe researcher (@wassiecapital) June 23, 2021

Meanwhile, the protocol developers blame the insider and angrily say:

“A ShareStake developer has an internal job announcement. But don’t trust 100%. Very devilish. I have many questions. I’ll take a closer look today. “

Here is the announcement from a ShareStake developer about the inside job they suffered. Take it with a grain of.

Very ugly. I have many questions. I’ll take a closer look today. #DeFi pic.twitter.com/LUwsz8JJH4

– Chris Blec | DeFi watch (@ChrisBlec) June 23, 2021

Concerns about the rise in exit fraud and DeFi carpet hauling are compounded by another exploit from an unspecified vulnerability.

Meanwhile, the most recent incidents in the ecosystem last week did a lot of damage.

The second largest ETH2 staking pool StakeHound suspends all transmissions from stETH – a tokenized form of staked ETH after the loss of private keys. $ 500,000 was stolen from the Impossible Finance log on Binance Smart Chain in a flash loan attack, and Iron Finance’s TITAN fell nearly 100% in a terrible bank run that turned Shark Mark Cuban into braised fish too.

At home at home

According to Cryptoslate

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