Shibarium Bridge Attack Leads to 2.744% Shina Inu Price Drop

Shina Inu's latest price was $0.06, down 2.744% in the last 24 hours. The Shina Inu community is on high alert after a major compromise of the Shibarium bridge over the weekend. What began as reports from blockchain security firm PeckShield quickly escalated into a confirmed attack involving validator key leaks, flash loans, and malicious state changes. Developers have scrambled to contain the breach by freezing 4.6 million BONE tokens, but the situation has revealed vulnerabilities in the security of Shina Inu’s infrastructure.

Taking to the social media platform X, Shina Inu developer Kaal Dhairya revealed that the incident was probably planned for months and executed using a flash loan to acquire 4.6 million BONE tokens. After gaining access to validator signing keys, the attacker was able to gain majority control and approve a malicious state to siphon assets from the Shibarium bridge. Fortunately, the stolen BONE was delegated to Validator 1, leaving it locked by unstaking delays and giving the team a narrow opportunity to intervene.

Dhairya confirmed that the developers immediately froze the compromised funds, suspended all staking and unstaking activity, and transferred stake manager reserves into a hardware wallet secured by a 6/9 multisignature setup. However, the moves were temporary until the extent of the validator compromise could be confirmed, but the developer assured the community that protecting assets was the team’s top priority.

The breach drew quick attention from multiple blockchain security outfits. PeckShield, a leading blockchain security company, posted an Etherscan transaction showing the breach by the ShibaSwap exploiter on X. Kaal Dhairya noted that the Shina Inu team is working with PeckShield, Hexens, and Seal 911 to continue investigations on the incident and the next steps to take.

According to a separate analysis by Tikkala Security on X, the losses appear to extend beyond the BONE freeze. The post claimed that multiple signer keys appear to have leaked in Shibaswap, which caused an estimated $2.8 million loss. Tikkala Security pointed to an attacker address on Etherscan and explained that the exploit involved repeatedly submitting legitimate Merkle leaf exit requests tied to a root signed by ten different addresses.

K9 Finance has declared a bounty of 23,000 (5 ETH) to reclaim stolen tokens following a major exploit that had passed off with $2.4 million through the Shibarium bridge. In this assault, the hacker obtained a flash loan and took control of the keys of the validator in Shibarium and stole large amounts of money. The attacker borrowed 4.6 million BONE, the governance token of Shibarium, and carried out a flash loan and obtained majority power by compromising 10 out of 12 validator signing keys. This enabled the control of the consensus of the network to certify fraudulent transactions. Under this control, the attacker emptied around 224.57 ETH and 92.6 billion SHIB and moved the stolen funds to his or her wallet. Secondly, the hacker acquired $700,000 of KNINE, which are the tokens of K9 Finance, a major participant in the Shibarium ecosystem.

Shibarium developers responded by loading and unloading stakes as quickly as possible. This freeze caused the 4.6 million borrowed BONE tokens to be frozen because they are inherently unstaked. The delay was effective in ensuring that the attacker did not consolidate control of the network. The DAO of K9 Finance responded by blacklisting the wallet of the attacker. This action made the KNINE tokens impossible to sell at open markets, preventing the liquidation and containment of the harm. K9 Finance also dispatched an on-chain message to the attacker requesting a timely restoration of stolen tokens. The bounty offer will last 30 days, but will begin a reduction after a week – it is a sign of the urgency of the plea.

The attack caused the Shina Inu community to shake, and developers emphasized that they have community asset protection and verifying the integrity of validator keys at the top of their list. It investigates cybersecurity experts Hexens, Seal 911, and PeckShield, and also contacted authorities. But the team is still willing to make a good-faith negotiation with the attacker when the money is refunded without going to court. Kaal Dhairya, a developer of Shina Inu, wrote in X that the advanced plan of the attacker seems to have been planned for many months. Containment and open communications are the main pillars of the continuing response.