- Shibarium suspended all bridge operations after a $4.1M exploit hit 17 tokens.
- Hacker cashed out USDC and USDT to ETH but was blocked from selling KNINE.
- SHIB team launched forensic analysis and offered 50 ETH bounty for fund return.
Shibarium, the Layer-2 blockchain powering Shiba Inu’s ecosystem, has been forced into crisis mode after a hacker exploited vulnerabilities and drained $4.1 million worth of funds. The exploit triggered an immediate suspension of all bridge operations while the team, alongside K9 Finance, scrambles to block further movement of the stolen assets.
According to the latest update from the SHIB team, forensic analysis has already begun to track down the attacker. Transactions have been flagged, and initial suspicions of a CCIP cross-chain connector flaw were dismissed. Still, the incident has left users shaken and the network facing one of its biggest challenges yet.
How the Hacker Drained 17 Tokens
The SHIB team confirmed that the attacker siphoned funds from 17 different tokens on Shibarium. Assets targeted include Ethereum (ETH), Shiba Inu (SHIB), KNINE, Leash, ROAR, Treat, USDC, USDT, BAD, SHIFU, FUND, DAI, LTD, XFUND, WBTC, and OSCAR.
While the hacker successfully swapped USDT and USDC for ETH, attempts to cash out KNINE tokens were stopped when K9 Finance blacklisted the wallet. Other tokens, however, remain under the hacker’s control, leaving the door open for more potential damage if not contained.
SHIB Team Offers Bounty, Hunts Root Cause
To recover stolen funds, the SHIB developers have placed a 50 ETH bounty on the attacker, urging them to return the assets. The team also revealed that the exploit may have been tied to compromised validator keys, though the investigation is still ongoing.
“The attacker only sold their USDT & USDC to ETH and attempted seven times to dump KNINE before K9 Finance’s DAO blocked their wallet. All other tokens remain at risk,” SHIB said in a statement.
The breach underscores the vulnerabilities still facing cross-chain bridges, one of crypto’s weakest security links. For Shibarium, this event is more than a financial setback—it’s a test of credibility in front of its growing community and investors.
