September 15, 2025 – Shiba Inu’s Shibarium network was hit by a sophisticated flash loan exploit that drained roughly $2.4 million in ETH and SHIB tokens from its cross-chain bridge.
How the Attack Happened
Investigators say the attacker used a 4.6 million BONE loan to gain access to 10 of the network’s 12 validator keys. This majority control allowed them to sign fraudulent transactions and withdraw funds. In total, the exploiter stole 224.57 ETH and 92.6 billion SHIB before moving assets to their own address.
Shiba Inu developer Kaal Dhairya called the incident “highly sophisticated” and suggested it may have been prepared over several months.
Emergency Response
The Shibarium team immediately:
- Paused network functions like staking and unstaking to stop further losses.
- Secured remaining assets in a 6-of-9 multisig hardware wallet for protection.
- Began collaborating with security firms including Hexens, Seal 911, and PeckShield to investigate the breach.
Interestingly, the BONE tokens used in the flash loan attack remain locked in Validator 1 due to unstaking rules, which could limit the attacker’s ability to cash out entirely.
Damage Control & Ongoing Investigation
Developers are still determining whether the compromise originated from a server breach or a developer’s machine. Authorities have been notified, but the Shibarium team has also stated they are open to negotiations — offering to drop charges and even pay a small bounty if the stolen funds are returned.
The team is in “damage control mode” and said full network operations will only resume after validator keys are secured and additional protective measures are deployed.
Bigger Picture
This incident adds to the growing list of cross-chain bridge exploits that have drained billions from the DeFi sector in recent years. Bridges, which connect blockchains together, are frequently targeted due to their technical complexity and concentration of funds.
For Shibarium, the immediate goal is to restore stake manager funds and strengthen validator security before reopening the network completely.
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