Shiba Inu's Layer-2 Network Breached, Over $1 Million Each in Ethereum, SHIB Stolen: How It Was Done

Core Insights - The Shiba Inu team reported a hacking incident that affected its ecosystem, detailing the assets involved and the actions taken in response [2][3]. Incident Details - The attacker utilized a flash loan to acquire 4.6 million Bone ShibaSwap (BONE), gaining temporary validator voting power to deploy malicious software on Shibarium [3]. - Without the flash loan, the attacker would not have achieved the necessary 2/3 majority for the attack [3]. - The attacker repaid the transaction using drained assets from the bridge, specifically 224.57 Ethereum (ETH) valued at $1.03 million and 92.6 billion SHIB worth $1.27 million [4]. Impact on Ecosystem - Other tokens within the Shiba Inu ecosystem, including Doge Killer (LEASH), Shiba Inu TREAT (TREAT), and Shifu (SHIFU), were also affected but remain unsold and unmoved [5]. Response Actions - In response to the attack, Shiba Inu paused staking and unstaking functions to safeguard community assets [6]. - The team transferred stake manager funds to a secure multisig address and engaged blockchain security firms, including PeckShield, for a comprehensive forensic investigation [6].