Shiba Inu’s development team has frozen the BONE tokens of 4.6 millions after PeckShield, a blockchain security company, identified an advanced attack on Shibarium Bridge infrastructure. Developers acted immediately to prevent the breach and protect assets of community.
Kaal Dhairya, a developer from PeckShield, confirmed the incident after the alert was sent about suspicious activities on the network. Attackers used a Flash Loan exploit to obtain 4.6 Million BONE tokens by using compromised validator keys. The hackers used this attack to take over control of the Shibarium bridge system, and attempted asset drain from its ecosystem.
Due to the fact that they were delegated to Validator 1 as well as existing stake restrictions, all stolen tokens remain locked. The development team was given a critical window of time to take emergency measures due to this technical limitation. The team suspended stake functions immediately and implemented comprehensive security protocols in order to stop the breach.
Security and Emergency Response Measures
Shiba Inu’s developers moved stake manager funds into a hardware wallet protected by multisignature. The team conducted a comprehensive audit of validator keys in order to determine the scope of the compromise.
Validator 1 was delegated the stolen tokens, but they were locked because of staking limitations, and the Shiba Inu Team could then freeze them. The technical safeguard was crucial in preventing a complete loss of assets for the community.
Hexens Security, Seal 911 and PeckShield have joined forces with Shiba Inu to conduct an investigation into the security breach. The incident has been reported to the law enforcement authorities. The team offered a novel way to deal with the attackers. They promised no legal action in return for the funds and they also offered a reward.
Market impact and ecosystem implications
BONE, at the time this article is written, has a price of $0.2014. This represents a 22.22% increase over the past 24 hours, following the news about the tokens being frozen and the successful containment methods. Investors’ confidence in BONE team to effectively manage security threats is evident from the market reaction.
BONE Source:CoinMarketCap
Shibarium Bridge is an important infrastructure that allows the transfer of SHIB tokens, LEASH and BONE tokens, between Ethereum and Shibarium. This bridge allows for reduced transaction costs and faster processing times in decentralized applications such as gaming platforms and metaverse integrations.
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