Shiba Inu Faces Intense Backlash After Allegedly Failing to Report $4M Shibarium Hack

Community trust takes a hit as Shiba Inu's Shibarium faces scrutiny over a reported security breach.

The Silence Speaks Volumes

Reports of a $4 million exploit on the Shibarium network have surfaced, but the official response—or lack thereof—is drawing more fire than the hack itself. The community expected transparency; what they got was radio silence that's louder than any press release.

Trust, the Most Valuable Cryptocurrency

In the decentralized world, reputation is the ultimate collateral. When a project faces a multimillion-dollar security incident, the protocol isn't the only thing that gets tested—the team's commitment to its users faces the real audit. Every hour without clear communication compounds the damage.

The Aftermath and the Path Forward

The blockchain doesn't forget, and neither do investors. Rebuilding after a breach requires more than just patching code—it demands restoring faith through radical transparency and decisive action. The market has a funny way of pricing in opacity, usually with a steep discount.

TLDR

• A prominent crypto founder criticized Shiba Inu for not reporting the $4M Shibarium hack to law enforcement immediately.
• The Shiba Inu team offered an amnesty payment to the hacker but faced backlash for not involving authorities in the process.
• Critics argue that the failure to report the hack undermines trust in Shiba Inu’s commitment to transparency and security.
• Shiba Inu’s response to the breach has raised concerns about the project’s approach to legal and ethical responsibilities.
• The Shibarium bridge hack exposed vulnerabilities within the network and caused a loss of investor confidence in Shiba Inu.

A leading figure in the crypto ecosystem recently criticized Shiba Inu’s handling of the Shibarium bridge hack. The attack, which resulted in the theft of around $4 million in tokens, raised concerns about the project’s response. Critics argue that the team’s failure to immediately report the theft to law enforcement compromises the security and integrity of the project.

Shiba Inu’s Response to Shibarium Bridge Hack

The shiba inu team initially responded to the hack by offering an amnesty payment to the attacker in exchange for the return of the stolen funds. This approach is common in the decentralized finance (DeFi) space, aiming to recover assets quickly. However, this method raised questions, as it did not involve immediate legal action or collaboration with authorities such as the FBI.

Many in the crypto community criticized the decision, arguing that it sends the wrong message.

“By not reporting the hack, Shiba Inu could be signaling that it prioritizes market image over criminal justice,” one critic pointed out.

The lack of official law enforcement involvement has fueled doubts regarding the team’s commitment to protecting user funds.

Shibarium Bridge hacker foolishly chose not to accept the K9 bounty – it’s finally time to share the investigation we’ve been working on…this is juicy

The hacker made one stupid mistake and it completely unravelled their Tornado Cash laundering.

That one mistake… pic.twitter.com/itxsXbbGSm

— Shima 島。 (@MRShimamoto) December 1, 2025

Legal and Ethical Concerns Surrounding Shiba Inu’s Actions

The Shiba Inu team’s decision not to engage law enforcement immediately has sparked heated discussions within the crypto community. Critics argue that this oversight could set a troubling precedent for other projects. In the case of such a major security breach, failure to report the theft could suggest that internal negotiations and damage control are given precedence over legal responsibility.

Shiba Inu’s Core developer, Kaal Dhairya, acknowledged the situation’s complexity but assured investors that measures were in place to mitigate further risks. The response, however, has done little to reassure critics who believe that a stronger stance should have been taken. They argue that the project should have prioritized transparency and legal action to safeguard user trust.

The hack itself exposed vulnerabilities within the Shibarium bridge’s security, allowing the attacker to gain control of a majority of validators. The attacker used an advanced flash loan attack, which raised further concerns about the network’s security architecture. This breach has led to a loss of confidence in the Shiba Inu ecosystem, with some investors questioning its future viability.

The Shiba Inu team has yet to clarify why it did not involve law enforcement agencies sooner. Without a clear explanation, the hack continues to affect the project’s reputation, especially among those who value transparency in decentralized networks.