The decentralized finance platform K9 Finance has announced a reward for the return of funds after a $2.4 million Shibarium bridge exploit.
K9 Finance's Reward Proposal
The K9 Finance platform, built on the Shiba Inu Shibarium network, has offered 5 ethers, equivalent to about $23,000, to the hacker behind the $2.4 million exploit of the Shibarium bridge. On Monday, the team sent an on-chain message to the hacker urging them to return the stolen funds. The bounty will remain open for 30 days, but its value will decrease after a week.
Details of the Shibarium Exploit
The exploit occurred on Friday when hackers gained access to validator signing keys, resulting in losses of about $2.4 million in Ethereum and Shiba Inu. They used a flash loan to purchase 4.6 million Bone ShibaSwap (BONE) tokens, obtained majority validator control, and signed an evil transaction that siphoned off the funds.
Response from Shibarium Developers
In response to the exploit, Shibarium developers suspended staking and unstaking activities, transferring stake manager funds into a multisig-controlled hardware wallet for security. The developers are collaborating with security companies such as Hexens, Seal 911, and PeckShield to investigate the incident. Shiba Inu developer Kaal Dhairya mentioned that the team has also contacted authorities but remains open to negotiating with the attacker.
As a result of the exploit, there has been a price drop across Shiba Inu ecosystem tokens. The developers' main focus is now on restoring security and protecting users' assets.
