The Shiba Inu (CRYPTO: SHIB) team revealed on Wednesday that over $4 million in cryptocurrencies was stolen in the recent hack of its Layer-2 network, Shibarium.
Shiba Inu Ready To Pay Bounty
A total of 17 different coins were drained out, according to the official X account tied to the SHIB token, including $1 million in Ethereum (CRYPTO: ETH), $1.3 million in SHIB, $717,000 in K9 Finance (KNINE), $680,000 in Doge Killer (LEASH) and $260,000 in ROAR.
Smaller amounts of USDC (CRYPTO: USDC), Tether (CRYPTO: USDT) and Shiba Inu Treat (TREAT) were also pilfered. Shiba Inu informed that the attacker sold their USDC and USDT to ETH, but their attempt to sell KNINE tokens was thwarted. The other tokens remain in the attacker’s control.
The team has offered a bounty of 50 ETH, worth $229,400 at current prices, to the attacker should they return the stolen funds.
“We have suspended bridge operations, launched forensic analysis, & there is a significant loss of user funds on Shibarium,” Shiba Inu said. “We will improve monitoring & alerting and continue to increase internal security practices.”
Shytoshi Denies Abandoning Team Amid Crisis
This update comes as the Shiba Inu ecosystem tries to mitigate the impact of a major flash loan-like attack. The attacker temporarily gained validator voting power, i.e, a 2/3 majority, to push malicious software on Shibarium. The team is collaborating with blockchain security firms, including PeckShield, for a full forensic investigation.
Shytoshi Kusama, the lead ambassador of the Shiba Inu ecosystem, confirmed that they were actively working with developers and dismissed reports of their absence as "preposterous."
Price Action: At the time of writing, SHIB was exchanging hands at $0.00001333, up 2.1% in the last 24 hours, according to data from Benzinga Pro. Since the hack, the meme coin has fallen 9.3%.
Photo Courtesy: vlastas on Shutterstock.com
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