BONE Price Surges 40% After Shibarium Flash Loan Exploit

Shiba Inu's layer-2 network, Shibarium, experienced a flash loan attack:

An attacker used 4.6 million BONE to control a validator.
Assets were stolen from the Shibarium bridge connecting to the Ethereum network.
Staked BONE remains locked due to an unstaking delay, allowing developers time to respond.

Actions taken by the Shibarium team:

Paused staking operations.
Transferred funds to a secure hardware wallet with multisig protection.
Initiated an internal investigation.

The cause of the breach is yet to be determined. Estimated losses are near $3 million. Security firms and law enforcement have been engaged, and developers offered a settlement to the attacker if funds are returned.

Market impact:

BONE price initially more than doubled before correcting to a 40% gain.
SHIB increased by over 8%.