Hacker Attack on Shiba Inu (SHIB) Network: Developers Issue Statement

Shiba Inu (SHIB) has frozen 4.6 million BONE tokens after it was revealed that they were linked to a security breach in Shibarium, the protocol’s Layer-2 scaling solution.

The Shiba Inu team has issued an official statement regarding suspicious activity flagged by PeckShield. The project team announced the launch of a comprehensive investigation involving both internal security staff and external partners.

According to the update, the details of the hack are as follows:

• The attacker temporarily gained validator voting power by purchasing 4.6 million BONE in the same block with funds obtained from the bridge hack. This power was used to sign a malicious “state” on Shibarium.
• The transaction was repaid using 224.57 ETH and 92.6 billion SHIB, similar to a flash loan.
• Importantly, it was stated that BONEs cannot be withdrawn because they are delegated to validators.
• Investigations showed that signing keys for 10 out of 12 validators were compromised.
• The attacker attempted to sell approximately $700,000 worth of KNINE, but all attempts failed because the K9 Finance DAO multisig address was blacklisted.
• The LEASH, ROAR, TREAT, BAD, SHIFU tokens affected by the attack have not been moved yet.

However, the developers reported that they have taken precautions regarding the hack attack:

• Staking/unstaking operations have been halted to protect community assets.
• The forensic analysis process was initiated with Hexens, Seal911 and PeckShield.

*This is not investment advice.