Shiba Inu Freezes 4.6 Million BONE Tokens Post-Exploit

Shiba Inu Freezes Tokens After Bridge Exploit

The Shiba Inu team recently froze 4.6 million BONE tokens in response to a Shibarium bridge attack. The tokens were initially targeted through a validator compromise, but swift action prevented a potential extensive loss.

Kaal Dhairya, a core developer, confirmed the breach resulted from compromised keys. Actions included pausing staking/unstaking and securing funds with a multi-signature wallet for protection.

BONE Token Dependency Raises Community Concerns

This event impacted the Shiba Inu community significantly, as the BONE token is essential for governance and validator operations. Security audits are ongoing by multiple firms to assess potential vulnerabilities.

The broader market reacted to security concerns, with fluctuations in token values. However, no institutional impacts or external grants were jeopardized, limiting the financial implications for stakeholders.

“Because the BONE was delegated to Validator 1, it remains locked (due to unstaking delays), giving us the chance to freeze those funds.” – Kaal Dhairya, Core Developer, Shiba Inu

Validator Security Lapses Recalled in Crypto Attacks

Previous instances, like the Axie Infinity breach, saw similar attacks exploiting governance vulnerabilities. This pattern emphasizes the need for enhanced validator security across Layer 2 networks.

Experts suggest that the implementation of multi-signature wallets and prompt incident response provide a robust defense. The Shiba Inu incident offers insights into potential improvements in future cybersecurity measures.