The Siba Inu Layer-2 Network, Shibarium, was beaten by a coordinated exploit that saw an attacker using a flash loan to obtain control over a validator, drain the assets from its bridge and activate a temporary shutdown of the rethinking operations.
The attacker, according to Shibarium developer, Kaal Dhariya, bought 4.6 million bones, the Siba Inu layer 2 governance sheet, using a flash loan. Then, the attacker obtained access to the validator signature keys to achieve the majority validator power.
With that power, the attacker signed a fraudulent network state and the diverted assets of the Shibarium bridge, which connects it to the Ethereum Network.
Since the bone is still bet and is subject to an unstable delay, the funds remain blocked, giving developers a narrow window to respond and freeze the funds, said Dhariya.
The Shibarium team has now stopped all the stake and disapproval functionality, transferred the remaining funds to a hardware wallet protected by a multisig configuration of 6 of 9 and launched an internal investigation.
It is still not clear if the violation arose from a committed server or a developer machine. While the total losses have not been made, the transaction data suggests that they are about $ 3 million.
The team is working with Hexens security companies, Seal 911 and Peckshield, and has alerted the police. But developers also extended a peace offer to the attacker.
“The authorities have been contacted. However, we are open to negotiate in good faith with the attacker: if the funds are returned, we will not press any charge and we are willing to consider a small reward,” Dhariya wrote in X.
The price of the bone jumped immediately after the attack and at one point he saw its value more than double, before a correction saw it move to a gain of around 40% from the exploit. Shib has risen more than 8%.
