Shiba Inu Network Rocked by Multi-Million Dollar Flash Loan Exploit
Another day, another DeFi heist—Shiba Inu Network joins the not-so-exclusive club of protocols learning the hard way that code isn't law, it's just code.
How the Attack Unfolded
Exploiters deployed flash loans to manipulate liquidity pools, draining millions in seconds. No original data gets shared here—just the cold, hard reality that someone's algo outsmarted someone else's smart contract.
The Aftermath
Token prices dipped, Twitter panicked, and the usual 'we're investigating' tweets rolled out. Because nothing says 'secure' like a post-mortem thread.
Just another reminder that in crypto, the only thing flashier than the gains are the exits.
Shiba Inu’s Layer-2 network, Shibarium, which serves as a bridge to Ethereum
$4,651, was recently targeted in a flash loan attack. The attack resulted in the theft of approximately 224.57 ETH and 92.6 billion SHIB, representing a total loss of $2.4 million. Following the incident, shiba inu developers temporarily halted some operations on the network.
Details of the Flash Loan Attack
Investigations revealed that the attacker borrowed 4.6 million BONE, Shibarium’s governance coin, through a flash loan. The attacker then accessed 10 out of 12 validator keys, gaining majority control. This allowed the attacker to extract ETH and SHIB from the bridge contract and transfer them to their address. The total market value of the stolen assets was recorded at around $2.4 million.
The attacker also targeted the K9 Finance ecosystem, seizing approximately $700,000 worth of KNINE coins. However, K9 Finance DAO swiftly blacklisted the attacker’s address, preventing the sale of these coins and rendering them unusable on the market.
Measures Taken After the Attack
In response to the attack, Shiba Inu developers suspended staking and unstaking operations on the network. This action immobilized the borrowed BONE coins and limited the attacker’s influence on the network. Moreover, the developers initiated a technical review in collaboration with security firms Hexens, Seal 911, and PeckShield.
Following the incident, sudden fluctuations were observed within the altcoin‘s ecosystem. The price of BONE coin surged from $0.165 to $0.294 and then decreased to $0.202. Meanwhile, SHIB saw a 4.5% increase in value over the past 24 hours.
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