Shibarium Bridge Hit by $2.4M Flash Loan Attack—Here’s What Went Down

Another day, another crypto exploit—except this one’s a doozy.

Shibarium’s cross-chain bridge just got hammered. A slick attacker pulled off a flash loan heist, siphoning a cool $2.4 million in the process. Not exactly pocket change, even by DeFi standards.

How It Went Down

The assailant exploited a logic flaw in the bridge contract. They took out a massive flash loan, manipulated liquidity pools, and bounced before anyone blinked. Classic hit-and-run—executed with chilling precision.

No user funds were directly drained, but the protocol’s treasury took the full brunt. That’s the thing with decentralized infrastructure: one weak link, and the whole chain feels the yank.

Aftermath and Reactions

Shibarium devs are scrambling. Bridge operations are paused, audits are being revisited, and the usual ‘we’re investigating’ tweets are flying. Community sentiment? A mix of fury and fatigue.

Flash loans remain both a marvel and a menace—offering insane leverage with zero collateral, perfect for both innovation and annihilation.

Just another reminder: in crypto, the line between genius and recklessness is often just a line of code. And sometimes, it’s the traders who end up writing the toughest audits—with other people’s money.

In brief

• Shibarium Bridge suffered a 2.4 million dollar flash loan attack, targeting its BONE and SHIB tokens.
• Developers suspended certain functions and requested cybersecurity experts to limit the damage and investigate.
• After a 99% drop in August, this new attack increases the fragility of the Shibarium ecosystem.

A meticulously prepared crypto attack

The operation was no accident. The attacker contracted a flash loan of 4.6 million BONE, Shibarium’s governance token. By exploiting this position, they gained access to 10 of the 12 validation keys, securing a comfortable majority to manipulate the protocol. From there, the script was written: extraction of 224.57 ETH and 92.6 billion SHIB, transferred with surgical precision to their wallet.

But the most surprising aspect is the scale of the plan. The attacker did not limit themselves to the main funds; they also seized KNINE tokens related to K9 Finance for approximately 700,000 dollars. In the crypto ecosystem, such a maneuver could have amplified the chaos, but the swift reaction from the K9 DAO, blacklisting the address, prevented the liquidation of these assets. A rare decision, but vital to contain the damage and indirectly protect Shibarium.

Chain reactions and market impacts

Facing this breach, the shiba inu developers acted without delay. Staking and unstaking were suspended, freezing the borrowed BONE and cutting off the attacker from their control lever. The incident, described as “sophisticated” by developer Kaal Dhairya, was reportedly planned over several months. Proof that attackers no longer settle for improvised opportunities but orchestrate true long-term operations.

The direct consequence was a quick onset of volatility. The price of BONE first surged from 0.165 to 0.294 dollar in one hour, then quickly corrected to 0.202 dollar. SHIB, on the other hand, surprisingly ROSE by 4.5% in 24 hours, a sign that the market has not completely lost confidence. As often in crypto, drama also fuels speculation.

This incident occurs in an already tense context for Shibarium. Last August, the project suffered a NEAR 99% collapse, a brutal drop that shook investors’ confidence. The current attack only rekindles these doubts, confirming that the network’s stability remains fragile despite recovery attempts.

Towards rethought security?

This episode highlights the fragility of cross-chain bridges, true nerve centers of the crypto ecosystem. Despite the involvement of specialized teams like Hexens, Seal 911, and PeckShield to investigate, the question remains: how to sustainably protect protocols that attract both users and predators?

Shibarium developers now consider negotiating with the attacker via a restoration bounty, a pragmatic approach already seen in crypto. At the same time, contact with authorities shows that the boundary between decentralized finance and legal framework is becoming increasingly thin.

One thing is certain: between the 99% drop in August and this multi-million dollar hack, the Shibarium bridge is going through a turbulence zone likely to leave deep marks on the Shiba Inu ecosystem.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.