$2M+ Shibarium Bridge Exploit: Crucial Response Now Limits Losses

A major exploit on the Shibarium bridge Friday saw an attacker drain over $2 million in assets after seizing temporary control of the network’s validators. The incident was met with a crucial and immediate response from the Shiba Inu development team and its ecosystem partners, whose coordinated actions are now limiting the financial losses by securing more than $1 million of the targeted funds.

Key Points:

• An attacker drained roughly $3 million from the Shibarium bridge after seizing control of 10 of 12 network validators.
• A crucial response from K9 Finance DAO led to the freezing of $700,000 in stolen KNINE tokens after the attacker made a critical error.
• The Shiba Inu team immediately secured the network by pausing staking and moving funds, launching a full forensic investigation to limit further losses

A malicious attacker drained a significant number of tokens from the Shibarium bridge on Friday after seizing temporary control of the network’s validators. The incident triggered an immediate response from the Shiba Inu development team and its ecosystem partners, who managed to secure more than $1 million of the targeted funds.

Anatomy of a Coordinated Attack

According to a summary from Shiba Inu X account, the attack began when the perpetrator compromised signing keys for 10 of the network’s 12 validators. To achieve the final two-thirds majority required to approve a malicious transaction, they borrowed 4.6 million BONE via a flash loan.

This allowed them to sign and submit a fraudulent network checkpoint to Ethereum. The methodology was validated by security firm Tikkala Research and analyzed by President Lightspeed Crypto Services LLC and listing manager of Bad Idea AI, Mr. Lightspeed.

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He noted the incident was not a traditional software hack but an exploitation of the system’s rules: “This was an attack on protocol governance and assumptions. In essence, the bridge behaved as designed under malicious control.”

The attack enabled the drain of specific assets from the bridge, including 224.57 ETH and 92.6 billion SHIB.

A Swift, Multi-Layered Defense

The Shiba Inu core team responded immediately. Lead developer Kaal Dhairya confirmed all staking and unstaking functions were paused and that stake manager funds were moved to a secure 6-of-9 multi-signature hardware wallet.

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Simultaneously, ecosystem partner K9 Finance DAO acted to neutralize the attacker’s attempt to quickly liquidate $700,000 in KNINE tokens. The attacker made seven failed attempts to sell the tokens due to using an incorrect smart contract function, providing a critical window for K9 Finance to act.

“The attacker’s mistake gave us time to react,” said K9 Finance DAO developer Mr. Shimamoto. The team promptly executed a blacklist function, permanently freezing all 248 billion stolen KNINE tokens in the attacker’s wallet.

Aftermath: Securing the Network and Path Forward

With the frozen KNINE tokens and 4.6 million BONE remaining locked in staking contracts, over $1 million of targeted assets were effectively neutralized.

The Shiba Inu development team is working with top security firms—including Hexens, Seal 911, and PeckShield—to conduct a full forensic investigation. Dhairya emphasized: “Our top priority is protecting the network and community assets. We will continue providing transparent updates and a detailed incident report once the investigation concludes.”

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YONA GUSHIKEN

Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.

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Yona has no crypto positions and holds no crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.