Kaal Dhairya, the lead developer of the Shiba Inu (SHIB/USD) ecosystem, has labeled a recent hack incident on the Shibarium Layer 2 network as “serious,” revealing that the losses amounted to approximately $4 million in various cryptocurrencies. In a blog post on Sunday, he detailed the team’s efforts to manage the fallout from this security breach, emphasizing that while the damage was contained, it could have been much worse.
Dhairya confirmed that operations concerning bridge functionalities on Shibarium are currently restricted and have been reinforced with additional security measures. These enhancements affect several processes, including deposits, withdrawals, claims, and rewards. He highlighted the recovery and safeguarding of Bone ShibaSwap (BONE/USD) tokens, which had been used for validator voting power prior to the incident.
The hack is believed to have compromised multiple validators, exposing inherent weaknesses in the system’s decentralization. Dhairya admitted that while decentralization has always been a goal, it had been deprioritized in favor of other developmental roadmaps. He refrained from providing a timeframe for when bridge operations might resume, underscoring the priority on safety in the aftermath of the breach.
Additionally, Dhairya expressed frustration over internal dynamics within the Shiba Inu leadership, distancing himself from being the leading figure, and criticized those he perceives as leaders who benefit while leaving others to handle the fallout. “I am done trying to keep it all together,” he stated.
The attack led to the loss of a variety of cryptocurrencies, including $1 million in Ethereum (ETH/USD) and $1.3 million in SHIB, as well as smaller amounts of USDC, Tether (USDT), and Shiba Inu Treat (TREAT). The attacker temporarily seized a 2/3 majority of validator voting power, allowing them to implement malicious software into Shibarium.
In the context of this incident, Shytoshi Kusama, the lead ambassador for the Shiba Inu ecosystem, confirmed their ongoing collaboration with developers to address the breach and dismissed claims that the leadership was inactive as “preposterous.”
In related developments, Ethereum creator Vitalik Buterin has urged the blockchain community to focus more on low-risk decentralized finance solutions, such as payments, savings, and collateralized lending, which he deems more aligned with the network’s foundational goals. He criticized the dominance of memecoins in the ecosystem, stating that it detracts from genuine efforts to positively impact the world.
As of now, the SHIB token is trading at approximately $0.00001246, marking a decrease of 3.95% over the last 24 hours according to data from Benzinga Pro.
