Shib Army Alert: The Shiba Inu team explains the security violation

Tl; DR

• Information emerged on Friday that Shiba Inu Shibarium could be hacked following several suspicious transactions.
• The team has provided more updates today, indicating that investor funds are safe, and have also described what has already been done and what are the next steps.

SHIB security incident

After Peckshield reported suspicious activity on Friday, the official Shiba Inu channel on X said that the team had contacted external security partners to investigate. One of the first updates published on Saturday noted that a sophisticated attack, which was probably planned for months, was made using a flash loan to buy 4.6 million bone tokens.

The striker had access to the validator’s signature keys, reached the mainly power of the validator and signed a malicious state to drain the assets of the bridge. While the tokens were delegated to the validator 1, they remained locked (due to unspoken delays), which allowed the team to freeze them.

A more recent Q&R of the team, republished by Lucie, said that only a “small amount of eth / shib was moved”. According to another position, the precise amount was 224.57 ETH (valued at around $ 1 million) and 92.6 billion shib (worth around 1.33 million dollars).

The other touched tokens include the leash, the roar, the treat, the evil and the shifu, but they were not moved or sold at the time of the post. The striker also tried to sell $ 700,000 in Knine, but they failed because the K9finance DAO Multi-Sig has put on black list.

Are the funds safe and what is the next step?

The team was categorical that all investor funds were safe. The markup and the gap have been interrupted, and all the funds were moved and secured in multi-Sig cold storage. The team also engaged with the main security companies, such as Peckshield, Seal911 and Hexens, to investigate the incident more.

In terms of next steps, the Shiba Inu team said:

• Secure validator key transfers and confirm the integrity of the full chain.

• Restore the funds of the stake manager once the security is assured.

• Continue coordination with partners to freeze funds related to the attacker

• Publish a full incident report Once the investigations ends.

Despite this incident, the largest native token on the project has skyrocketed in the past 24 hours. Shib has gained more than 9% value and is now nearly $ 0.0000145, which is the highest level in about a month.