No, Shibarium Bridge Was Not Hacked, SHIB Team Shares Crucial Update

The Shiba Inu team has confirmed that the Shibarium Bridge was not hacked after a validator key breach.

Attackers used a flash loan to acquire 4.6 million BONE, but most funds remain frozen and secure.

Stake functions are currently paused as the team works with security firms to restore full control.

Shibarium News: Validator Key Breach Triggers Security Measures

In a recent tweet, the Shiba Inu team addressed concerns about the Shibarium Bridge after a recent security incident.

The update confirms that the protocol was not hacked. Instead, the problem began when attackers obtained validator keys and used them to sign a false state.

According to the team, the incident involved a flash loan. The attackers used the loan to purchase 4.6 million BONE tokens.

These tokens were then delegated to Validator 1. Due to the way the network works, the BONE remains locked because unstaking requires time.

This delay allowed the team to freeze the funds before they could be moved.

The team said only a small amount of ETH and SHIB left the system. The larger holdings, including the 4.6 million BONE, remain safe and cannot be withdrawn.

In response, Shibarium paused stake and unstake functions as a precaution. The stake manager funds were also removed from the proxy and placed in a hardware wallet.

As detailed, this wallet is secured by a 6-of-9 multisig, meaning six signatures are required to approve any movement of funds.

The team noted this arrangement is temporary until all validator keys are reviewed and secured.

The update stresses that the bridge itself remains intact and that the core protocol was not compromised.

The issue was limited to validator keys being used in a malicious way. Security firms, including Hexens, Seal911, and PeckShield, are working with the team to investigate and strengthen protections.

Per the Shibarium news, the team promises that funds are safe and operations will return to normal once validator control is confirmed.

Meanwhile, the Shib team mentioned that regular updates will be shared with the community as the process progresses.

SHIB Price Moves Higher Despite Concerns

The market reaction to the news has been positive. The price of Shiba Inu’s token rose by 9.68% in the last 24 hours, trading at $0.00001449.

This shows investors may have confidence in how the team handles the incident.

It is important to note that the update of the 4.6 million BONE tokens also helped sentiment.

With those tokens locked, selling pressure has been mildly reduced. As a result, BONE rose sharply, gaining 41% in a single day.

The rise in both SHIB and BONE shows that the community is closely watching how the team responds.

In addition, the freeze of funds and the quick move to secure assets have calmed immediate concerns.

Shibarium Role in Ecosystem Expansion

Per the Shibarium news, the bridge is an important part of the Shiba Inu project. It allows users to transfer SHIB, BONE, LEASH, and other tokens between Ethereum and Shibarium.

The bridge lowers costs and makes transactions faster, supporting new uses in decentralized finance, gaming, and metaverse projects.

More importantly, beyond the bridge, the Shiba Inu team continues to expand the ecosystem.

A new migration plan is in place for the LEASH V2 token. The plan uses a fixed ratio to move holders from V1 to V2 without issues.

As disclosed, ShibaSwap has also rolled out an upgrade. The platform now offers better liquidity management and support for multi-chain trading.

These steps are part of efforts to make Shiba Inu a stronger player in the DeFi space. The validator key breach highlights the importance of security across the blockchain industry.

Similar cases have been seen in other networks. The Shiba Inu team says it is committed to protecting community assets while continuing with development plans.

Shibarium is expected to remain central to the project’s long-term growth with safeguards being strengthened.