Shibarium Exploit: Shiba Inu Team Forms "War Room"
Shiba Inu Responds to Shibarium Exploit with "War Room" Initiative
Shiba Inu's lead developer, Shytoshi Kusama, has addressed the recent $2.4 million exploit on the Shibarium bridge. Kusama confirmed the establishment of a dedicated "war room" focused on recovering the lost funds and enhancing the network's overall security.
In a public statement on X, Kusama refuted claims of distancing from the project, labeling them "utterly preposterous." He emphasized his ongoing collaboration with core developers to manage the repercussions of the exploit.
"Although I am focusing on AI initiatives to benefit all our tokens, I remain with the developers and leadership in the war room," Kusama stated.
Kusama explained his initial silence as a deliberate decision to allow for a comprehensive assessment of the situation before issuing any official comments. He also promised further updates via official Shiba Inu channels as the team progresses toward implementing long-term solutions.
This announcement comes shortly after Shiba Inu unveiled a developer upgrade for Shibarium, aimed at simplifying interactions between validators and builders on the Layer-2 chain. However, the exploit may cause delays as the team addresses vulnerabilities.
Details of the Shibarium Exploit
The exploit involved unauthorized access to validator signing keys on the Shibarium bridge. Attackers executed a flash loan attack and acquired 4.6 million BONE ShibaSwap (BONE) tokens, gaining control of a majority of validator power and enabling the transfer of assets off the network.
Approximately $2.4 million was drained in the attack. Shibarium developers responded swiftly by freezing validator functions and transferring staking assets to a secure multisig hardware wallet. External security firms, including Hexens, Seal 911, and PeckShield, have been enlisted to conduct a thorough investigation.
Dhairya, a lead developer on the project, affirmed that restoring network stability and safeguarding user funds remain the highest priorities.
Bounty Offered for Return of Funds
K9 Finance, a Shiba Inu decentralized platform, has offered a $23,000 bounty to the attacker for the safe return of the stolen assets. The bounty's value will decrease after the first week, highlighting the urgency to resolve the matter.
Market Impact
The market experienced volatility following the exploit. SHIB's price initially declined by around 6% but has since recovered to approximately $0.000013138. BONE experienced significant price swings, plummeting by nearly 35% over the past week. The KNINE token from K9 Finance also saw a drop of over 5% in a single day.
The Shiba Inu team is now focused on restoring immediate security and identifying vulnerabilities within the system. As incidents like this highlight the ever-present need for robust security measures, platforms like Codeum offer blockchain security audits and consulting services to help projects secure their networks.