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Lido claims LDO and stETH tokens remain safe from fake deposit attacks

Published date:

February 2, 2026

Lido claims LDO and stETH tokens remain safe from fake deposit attacks

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As stated by Lido, "This behavior [vulnerability in the smart contract] is expected and conforms to the ERC20 token standard. Both LDO and stETH (and Lido governance) remain safe."

Crypto staking platform Lido announced that Lido DAO (LDO) and Lido Staked Ether (stETH) tokens are secure from fake deposit attacks affecting crypto exchanges.

Specifically, when the LDO token contract executes a transfer operation with a quantity exceeding the user's actual holdings, it doesn't trigger the usual transaction rollback. Instead, it merely returns “false” as the outcome rather than indicating a failure.
— SlowMist (@SlowMist_Team) September 10, 2023

On September 10, on-chain security platform SlowMist tweeted about a vulnerability in the LDO smart contract that allowed hackers to carry out fake deposit attacks. As its name suggests, this exploit occurs when a malicious actor uses the existing security loopholes in smart contracts to add counterfeit tokens to their account. As a result, the hacker succeeds in increasing their asset balance without actually purchasing the tokens.

Soon, Lido replied to SlowMist’s tweet, assuring the crypto community that LDO and stETH tokens are safe from the exploits. The staking platform’s X (formerly called Twitter) account mentioned that the vulnerability is not unique to LDO as it is built into all ERC20 cryptocurrencies.

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Lido agreed to address the security issues by updating its LDO integration guides. It is worth noting that Lido has neither confirmed nor denied the occurrence of fake deposit attacks on its platform.

Meanwhile, the prices of LDO and stETH tanked shortly after the announcement. They have since resumed an uptrend, with Lido DAO costing $1.46 while stETH is being traded at $1,594. Unfortunately, their volumes have shrunk over the last 24 hours.

Written by

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

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How we reviewed this article

All Bitcompare articles go through a rigorous review process before publication. Learn more about our Editorial Process and Risk Warning.

Ayush Pande

Written by:

Ayush Pande

Writer

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

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