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K9 Finance, a decentralized finance platform on Shiba Inu's Shibarium layer-2 network, has offered a $23,000 bounty to the individual responsible for a recent bridge exploit that resulted in the loss of approximately $2.4 million in digital assets. The platform is urging the attacker to return the stolen funds.
Key Takeaways
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K9 Finance has offered a 5 Ether ($23,000) bounty to the attacker.
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The exploit drained $2.4 million in assets from the Shibarium bridge.
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Shiba Inu developers are working with security firms to investigate.
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Tokens within the Shiba Inu ecosystem experienced price drops following the incident.
The Exploit and Bounty Offer
On Monday, K9 Finance communicated directly with the attacker via an on-chain message, extending the bounty offer for 30 days. The message stipulated that the bounty would begin to decrease in value after seven days, emphasizing that "Settlement is atomic when we call recoverKnine(). If you call accept() we cannot cancel the deal. Code is law." The platform urged swift action, stating, "Bounty is live. Please, act fast."
Shiba Inu developer Kaal Dhairya confirmed on X (formerly Twitter) that authorities have been contacted, but the team remains open to negotiation with the attacker. The exploit, which occurred on Saturday, involved malicious actors gaining access to validator signing keys. By utilizing a flash loan to acquire 4.6 million Bone ShibaSwap (BONE) tokens, the attacker secured majority validator power, enabling them to sign a fraudulent transaction and transfer the funds from the bridge.
Response and Security Measures
In the wake of the attack, Shibarium developers have temporarily paused their stake and unstake functions. Furthermore, funds held by the stake manager have been transferred to a hardware wallet secured by a multisig arrangement. Dhairya reiterated that the team's primary focus is on restoring network security and protecting user assets. They are actively collaborating with security experts, including Hexens, Seal 911, and PeckShield, to conduct a thorough investigation.
Market Impact
The exploit had a noticeable impact on the prices of tokens associated with the Shiba Inu ecosystem. The SHIB token saw a decline from $0.0000145 to $0.0000131, a drop of 7%. The K9 Finance (KNINE) token experienced a 10% decrease, falling from $0.00000287 to $0.00000257. The BONE token, used on ShibaSwap, suffered the most significant decline, dropping 38% from $0.31 to $0.19 since Sunday.
This incident on Shibarium follows a separate, smaller-scale attack targeting the personal wallet of THORChain co-founder John-Paul Thorbjornsen, who reportedly lost $1.35 million due to a scam during a Telegram meeting call.
Sources
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