Shiba Inu’s Layer-2 network, Shibarium, was hit by a coordinated exploitation that then an attacker use a flash loan to gain control of a validator, drain assets from his bridge and trigger a temporary shutdown of stack operations.
The striker, according to shibarium developer Kaal Dhariya, bought 4.6 million bones, the Government of Shiba Inu’s Layer-2 network using a flash loan. The striker then gained access to the Validator Signing Keys to achieve the majority validator force.
With this power, the striker signed a fraudulent network mode and siphoned assets from the Shibarium Bridge that connects it to the Ethereum network.
As the bone is still set and subject to an unstarted delay, the funds remain locked, giving developers a narrow window to respond and freeze the funds, Dhariya said.
The Shibarium team has now pause all-share and ustake functionality, moved remaining funds to a hardware design book protected by a 6-of-9 multisig setup and launched an internal study.
It is still unclear whether the violation came from a compromised server or a developer machine. While the total losses are not advanced, transaction data suggests they are almost $ 3 million.
The team works with security companies Hexens, Seal 911 and Peckshield and has warned law enforcement. But developers also expanded a peace victim to the striker.
“The authorities have been contacted. However, we are open to negotiating in good faith with the striker: If the funds are returned, we will not push any charges and are willing to consider a small bounty,” wrote Dhariya on X.
The price of the bone jumped immediately after the attack, and at one point its value saw more than double before a correction saw it moving to a gain of about 40% since the utilization. Shib is more than 8%.
