Shibarium Bridge Hacked: Attacker Drains $2.4M in ETH, SHIB, and BONE Tokens

• Shibarium bridge exploited as attacker drains $2.4M in assets.
• Developers freeze staking after hacker gains 83% validator key control.
• BONE surges 78% post-attack while SHIB rises 4.5%.

Shibarium’s Ethereum bridge was exploited in a flash loan attack on Friday, causing $2.4 million in losses. Network functions were frozen in the developers of the Shiba Inu ecosystem, and this was done to minimize additional risks.

The attacker took out a 4.6 million BONE borrow and acquired 83% of validator signing keys. With this majority, they drained 224.57 ETH and 92.6 billion SHIB from the bridge contract, valued at $2.4 million.

Also Read: XRP Breakout Looms as Key $3.07 Level Decides Next Move Toward $4.20

Developers Move to Contain the Breach

In response, Shibarium developers suspended staking and unstaking, keeping the borrowed BONE locked under the existing delay mechanism. This ensured that the exploiter had no long-term control even though he had the majority of the keys.

The attacker was also left with $700,000 in KNINE tokens associated with K9 Finance. K9 Finance DAO blocked their wallet when they attempted to sell them, so the tokens could not be sold.

Investigation and Recovery Efforts Underway

Kaal Dhairya, a top Shiba Inu developer, described the exploit as “sophisticated” and likely planned for months, according to his statement on X. He ensured that the police were put on guard and the possibility of a bounty should there be a refund of the money.

The developers of Shiba Inu introduced Hexens, Seal 911, and PeckShield to track the attacker’s activity and enhance recovery.

Volatile Token Prices After the Attack

BONE saw sharp swings after the exploit, surging 78% within an hour from $0.165 to $0.294 before dropping to $0.202. Investors were also volatile as SHIB increased by 4.5% over the last 24 hours despite the breach.

The Shibaria bridge hack revealed significant vulnerabilities in the security of validators, and the attacker took over 83% of the validators’ keys. The developers’ prompt response prevented the impact, but recovery and investigations are in progress.

Also Read: Kame Aggregator Recovers 185 ETH Worth $832,500 After Sei Network Breach

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