K9 Finance Announces $23K Reward Following $2.4M Shibarium Bridge Hack

Shiba Inu’s decentralized finance platform on the Shibarium layer-2 network has issued a 5 Ether ($23,000) bounty to the perpetrator of a recent bridge exploit, requesting the return of stolen assets.

On Monday, the DeFi platform communicated an onchain message to the attacker, indicating that the bounty offer will last for 30 days. They also announced that the bounty will decrease after seven days.

“Settlement is atomic when we invoke recoverKnine(). If you call accept() we cannot retract the agreement. Code is law,” K9 Finance stated. “The bounty is active. Please, take action quickly.”

In an X post on Saturday, Shiba Inu developer Kaal Dhairya mentioned that while they have involved the authorities, the team is open to discussions with the attacker.

Shiba Inu’s Shibarium bridge loses around $2.4 million due to exploit

The Saturday exploit resulted in a loss of about $2.4 million in digital assets after malicious actors accessed validator signing keys. Utilizing a flash loan to acquire 4.6 million Bone ShibaSwap (BONE) tokens, the attacker managed to obtain majority validator power and executed a malicious transaction to siphon the funds from the bridge.

Dhairya noted that in response to the incident, Shibarium developers have halted their stake and unstake functions and transferred their stake manager funds into a hardware wallet governed by a multisig.

The developer emphasized that ensuring network security and protecting user assets remains the team’s primary concern. Dhairya also stated that they are collaborating with security teams, including Hexens, Seal 911, and PeckShield, to conduct an investigation.

Tokens related to the Shiba Inu ecosystem experienced price declines following the exploit. The Shiba Inu (SHIB) token fell from $0.0000145 on Saturday to $0.0000131 at the time of this writing, marking a 7% decrease.

The K9 Finance (KNINE) token dipped from $0.00000287 to $0.00000257, reflecting a 10% loss. In contrast, ShibaSwap’s token, BONE, has experienced a 38% drop since Sunday, plummeting from $0.31 to $0.19.

Related: Dogecoin price rises despite the recent delay of the US DOGE ETF launch

THORChain co-founder loses $1.35 million from DPRK attack

The Shibarium exploit comes on the heels of another smaller-scale attack aimed at the personal wallet of THORChain co-founder John-Paul Thorbjornsen (JP Thor). Onchain investigator ZachXBT reported on Friday that Thorbjornsen was compromised after a meeting call scam on Telegram.