The Shiba Inu (SHIB) team announced on Wednesday that its Layer-2 network, Shibarium, suffered a hack that resulted in more than $4 million worth of crypto being stolen.
According to the project’s official X account, the attacker drained 17 different tokens. Losses included around $1 million in Ethereum (ETH), $1.3 million in SHIB, $717,000 in K9 Finance (KNINE), $680,000 in Doge Killer (LEASH), and $260,000 in ROAR. Smaller sums of USDC, USDT, and Shiba Inu’s TREAT were also taken.
The attacker reportedly converted the stolen USDC and USDT into ETH, though their attempt to sell KNINE was blocked. Other stolen tokens remain under their control.
In response, Shiba Inu offered the hacker a 50 ETH bounty, that is worth about $229,400 at current prices, if the stolen funds are returned. The team also confirmed that bridge operations have been suspended, a forensic review is underway, and new monitoring and security measures will be rolled out.
Shiba Inu Responds to Network Breach
The Shiba Inu ecosystem is working to contain the fallout from a flash loan-style exploit. The attacker briefly gained two-thirds of validator voting power, enabling them to push malicious software onto the Shibarium network.
The team has brought in blockchain security firms, including PeckShield, to conduct a full forensic review.
Shytoshi Kusama, the lead ambassador of the Shiba Inu ecosystem, stressed that developers remain actively engaged, dismissing rumors of their absence as “preposterous.”
On the market side, SHIB was trading at $0.00001333 at the time of writing, up 2.1% in the past 24 hours, according to Benzinga Pro. Still, the token has dropped 9.3% since the hack.
