TLDR
- Shiba Inu froze 4.6 million BONE tokens after a Shibarium Bridge hack risk.
- The hack used a flash loan exploit to compromise validator signing keys.
- Shiba Inu team paused staking and transferred funds to a secure wallet.
- Ongoing investigations involve PeckShield and other security firms.
The Shiba Inu team has frozen 4.6 million BONE tokens after a potential exploit was flagged by blockchain security firm PeckShield. The tokens were targeted in an attack involving the Shibarium Bridge, which prompted immediate action to protect the community’s assets. This move comes as part of the ongoing efforts to secure the Shiba Inu ecosystem while developers continue working on system upgrades.
Shibarium Bridge Hack Threatened Token Security
The alert came from PeckShield, a blockchain security firm, which identified suspicious activity linked to the Shibarium Bridge. The attack was executed through a flash loan exploit, enabling the attackers to purchase 4.6 million BONE tokens. These tokens were then delegated to a validator, giving the attackers control over the funds. The situation quickly escalated, and developers were alerted to the risk of funds being drained from the Shibarium Bridge.
In response, the Shiba Inu team froze the tokens. Since the stolen tokens were delegated to Validator 1, they remained locked due to staking restrictions. This provided the developers with enough time to act and prevent further damage.
The team confirmed that they had paused staking functions and transferred the stake manager’s funds to a hardware wallet secured by a multisig. They also began a comprehensive audit of the validator keys, emphasizing that safeguarding community assets remains their top priority.
Ongoing Investigations and Security Measures
Shiba Inu developers are collaborating with several security firms, including Hexens, Seal 911, and PeckShield, to investigate the situation. Authorities have been notified, and the developers have extended an offer to negotiate with the attacker. They have promised not to press charges and even suggested a bounty if the stolen funds are returned.
The attack and its aftermath highlight the ongoing need for robust security within the Shiba Inu ecosystem. As part of the team’s efforts to manage the situation, they have been working on improving the Shibarium bridge and overall system upgrades. These enhancements aim to better protect user assets while expanding the ecosystem’s capabilities.
Shiba Inu’s Ecosystem Developments and Future Plans
The Shiba Inu ecosystem is focused on several upgrades, including the migration of the LEASH V2 token and improvements to ShibaSwap. The Shibarium bridge is a key element in these plans, as it facilitates the transfer of SHIB, BONE, LEASH, and other tokens between Ethereum and Shibarium. By reducing transaction fees and improving speed, the bridge supports the project’s expansion into decentralized finance (DeFi), gaming, and the metaverse.
In addition to security concerns, the team has warned users about ongoing phishing scams that target Discord users. Scammers have been exploiting expired Discord links to create fake servers and trick users into verifying their wallets, leading to stolen tokens. The Shiba Inu team has stressed the importance of staying vigilant to protect their holdings from such attacks.
While the freeze on 4.6 million BONE tokens has helped stabilize the situation temporarily, Shiba Inu continues to work on strengthening its security measures and expanding its ecosystem.
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