Key Notes
- Shiba Inu announced that it has frozen 4,600,000 BONE tokens.
- This came after PeckShield highlighted an ongoing attack on the Shibarium bridge.
- SHIB price is in the green zone with a more than 10% rally.
Shiba Inu (SHIB) recently froze 4.6 million BONE tokens after it was linked to a breach on Shibarium, the Layer-2 scaling solution of the protocol. The latest freeze is a precautionary measure implemented to avoid further risk or another attack on the ecosystem.
Scams and Attacks on the Shiba Inu Ecosystem
The Shiba Inu team announced the freeze of 4,600,000 BONE on September 13, coming after blockchain analytics platform PeckShield highlighted an ongoing attack on the Shibarium bridge. The security firm first spotted suspicious activity on the Shibarium bridge. Immediately, PeckShield called the attention of Shytoshi Kusama , Shiba Inu’s lead developer.
Not long after, developer Kaal Dhairya claims that the Shiba Inu team has launched an investigation into the matter. Based on that probe, it was confirmed that the bad players behind the attack leveraged a flash loan to acquire the 4.6 million BONE. They compromised validator signing keys, giving him access and control over the protocol.
The Details
With majority control, the attackers attempted to siphon assets from the Shibarium bridge. Seeing that the stolen tokens were delegated to Validator 1, however, they stayed locked. This is due to staking restrictions, and this allowed the Shiba Inu team to freeze the tokens. Shiba Inu immediately sprang into action, temporarily suspending staking functions.
Stake manager funds were sent to a hardware wallet secured by a multisig, and an audit for the integrity of all validator keys was performed. In the opinion of the team, protection of the community assets is the top priority. Apart from PeckShield, other security firms like Hexens and Seal 911 have also contributed to the investigation.
The team has also offered the attacker a whitehat bounty reward and promised not to press charges if they return the funds before a stipulated time. This is not the first time that the Shiba Inu ecosystem has experienced such a breach in its system. Recently, it warned its users of scammers exploiting expired Discord links to create fake servers.
As soon as these hackers gained access, they tricķ unsuspecting users into “verifying” their wallets. Unknowingly, this action cleared out balances of SHIB and other tokens in minutes. At other times, these bad actors disguise themselves as Kusama and ask users for funds.
Shiba Inu Price Rallies By More Than 10%
Meanwhile, SHIB price has been on the upside, especially after a long while of being one of the underperformers in the crypto industry.
Analysts and market observers remain optimistic that September will be a better month for the token. They expect as much as a 163% rally in SHIB price. At the time of this forecast, SHIB burn rate climbed to 157,726% in a single day, giving the market the hope that an upside is possible.
At the time of this writing, the price of Shiba Inu has hit $0.00001459, corresponding with 10.33% rally within the last 24 hours.
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