Shiba Inu’s (SHIB) mysterious lead developer Shytoshi Kusama has broken months of silence, coming out three days after the dev team had frozen 4.6 million Bone ShibaSwap (BONE) tokens.
According to PeckShield safe guarding, Shibarium had suffered a multi-million bridge attack that led to the freezing of approximately $2.4 million in on-chain liquidity. Apparently, the scrupulous hackers compromised validator signing keys to execute a flash loan exploit, buying 4.6 million BONE in the process.
$2.4M Shibarium Loophole Gets Solved In SHIB’s War Room
As the stolen funds were delegated to Validator 1, SHIB’s team managed to lock the tokens up by temporarily halting all crypto staking functionality on Shibarium Layer-2. Now, Shytoshi Kusama is hammering away with the help of Hexens, Seal 911 & PeckShield crypto security agencies in damage control.
What’s known as the ‘War Room’ in Shytoshi’s cryptic X message, could imply building on further cybercrime prevention tactics, as well as negotiations with the hacker to return the funds for a $23K bounty. Shibarium’s top dev said “I am wise enough not to speak until I fully understand situations, and this one is a bit complex and deep”.
That being said, the hacker has 30 days to return the funds, but the bounty will decrease week by week, Shytoshi assured. Meanwhile, Kaal Dhairya, another prominent developer on Shibarium, explained that full network stability restoration remains the top priority.
For the time being, Shiba Inu’s (SHIB) price continues to exchange hands at a closed range between $0.0000129 to $0.0000316. The range-bound structure hardly keeps the blue-chip meme coin in crypto’s TOP 30 by global market cap, as the $0.000014 resistance level must be sustained for a convincing push towards the bullish side.
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On September 13, 2025, Shibarium, Shiba Inu’s Ethereum Layer-2 scaling solution, suffered a flash loan attack targeting its bridge. The attacker used a flash loan to acquire 4.6 million BONE tokens, gaining control of 10 out of 12 validator keys, and drained approximately $2.4 million in ETH, SHIB, and some BONE tokens.
Shiba Inu’s lead developer, Shytoshi Kusama, confirmed he’s in a “war room” with core developers to address the crisis and recover funds. Lead dev Kaal Dhairya noted the attack was likely planned for months. The team is working with external security firms like Hexens, Seal 911, and PeckShield to investigate and strengthen defenses.
The attacker stole around $2.4 million, including ETH, SHIB, and roughly $700,000 in KNINE tokens from K9 Finance. Quick action by the team to freeze validator functions prevented the attacker from fully liquidating the stolen assets.
The Shiba Inu team has paused staking and unstaking functions to limit further damage, moved assets to a secure multisig wallet, and rotated validator keys. They’ve contacted law enforcement and are open to negotiating with the attacker. K9 Finance offered a $23,000 bounty for the return of stolen assets. Updates are expected soon.
Core network operations remain functional, but staking and other key functions are paused in “damage control mode.” The team is working to secure the network, prevent future attacks, and restore normal operations. No user funds outside the bridge were directly impacted.
