Shiba Inu’s (SHIB) rebound rally was overshadowed by the multi-million dollar Shibarium L2 exploit for a few weeks, but now it seems the devs have regained control of the Layer-2. In the latest blog message, Shibarium’s key developer Kaal Dhairya dug deeper into the specifics of this incident.
As it all started with a malicious actor submitting three fake check-points to Shibarium’s mainnet contracts on Ethereum (ETH), the continuity was broken between Heimdall’s local & on-chain states. This has temporarily paused all legitimate check-point submissions.
Shibarium Team Rescues 4.6M BONE, Gates Closed For Hacker
At the same time, the cyber-fraudster exploited short-lived stake amplification techniques via the infamous 4.6M Bone ShibaSwap (BONE) delegation. Isolating the risks, Shibarium’s developer team responded with moving over 100 mission-critical smart contracts that are spanning over Shibarium, ShibaSwap DEX & SHIB: The Metaverse.
Setting up a rescue method to get the 4.6M BONE back in StakeManager, the team succeeded in recovering the lost BONE. The malicious delegation was also removed and denylisting notes added. For these tasks, Shibarium’s developers employed Hexens.io, an independent parallel reviewer.
With rotated keys & third-party monitoring, anomalies like this would be easier to detect in real-time. Now, the Shibarium L2 dev team is planning to add deny-list controls on the Plasma Bridge before re-initiating its full-scale functionality. There’s also a designed plan to make users whole and full restoration via careful gating, phased limits & partner coordination, Dhairya said.
On The Flipside
- Kaal Dhairya originally offered a “small bounty” and no charges pressed if the digital assets are safely returned to their rightful owners.
- The developer team abandoned the idea of offering the hacker a bounty after they decided to move on siphoning the stolen BONE.
Why This Matters
Extra security measures like third-party monitoring can be crucial in avoiding on-chain incidents like this in the future.
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A malicious actor injected three fake checkpoints into Ethereum contracts, causing a halt in Heimdall and allowing temporary control via a 4.6M BONE delegation—part of a $4M exploit attempt.
They worked non-stop for 10+ days, rotating all validator keys, migrating 100+ contracts to secure hardware, and fixing the checkpoint pointer through a three-stage test (Devnet, Puppynet, Mainnet), resuming normal operations.
The team rescued it by upgrading contracts and cleaning malicious state, neutralizing the delegation—great for BONE’s security as it prevents future misuse and strengthens staking.
No response from the attacker, who started moving stolen assets, so adding a contract would’ve added unnecessary risk; focus stayed on recovery instead.
Add denylisting to the Plasma Bridge, restart bridges with phased limits, make users whole through a fair plan, and partner with dRPC for better RPC—boosting reliability and adoption, which could benefit BONE as the network’s gas token.
