- Shiba Inu froze 4.6M BONE after a security breach.
- Compromised validator keys lead to network threats.
- Near $3 million drained, securing future transactions.
On September 13, 2025, Shiba Inu developers froze 4.6 million BONE tokens following a Shibarium bridge exploit involving validator key compromise, impacting Ethereum and Shiba Inu networks.
The incident underscores vulnerabilities in blockchain validation processes and has immediate consequences for Shiba Inu’s governance and market stability, causing a temporary spike in BONE prices.
Shibarium Bridge Exploit
The Shibarium bridge exploit resulted from a sophisticated validator key compromise leading to a brief network takeover. It caused a loss of 224.57 ETH and 92.6 billion SHIB. Developers quickly froze 4.6 million BONE tokens to counter further damage.
Shiba Inu developers, supported by Kaal Dhairya, managed the response, explaining the breach resulted from compromised keys, not a protocol flaw. Kaal Dhairya noted, “The exploit was not a flaw in the underlying protocol. Instead, the attacker had gained control of validator keys, which allowed them to approve a fraudulent network state.” K9 Finance DAO and other validators played crucial roles by refusing to sign malicious transactions, thereby curbing the attack.
Financial Impact
Financial markets faced unrest as the immediate aftermath of the exploit unfolded. The stolen BONE temporarily enhanced the attacker’s validator voting power. However, the freezing and subsequent measures relieved some immediate market pressures.
The bridging exploit saw 224.57 ETH and about 92.6 billion SHIB siphoned off, triggering an estimated loss around $3 million. Liquidity issues led to a sharp TVL drop, affecting confidence in the Shibarium network’s short-term security outlook.
Security Response
The incident heightened awareness of security flaws in bridge infrastructures. Regulatory bodies have noted increased breaches. Financial losses pushed developers to work closely with security firms like Hexens and PeckShield to mitigate future risks.
Historical precedents in cross-chain bridges often lead to rapid protocol interventions. In similar cases, compromised validator keys have alarmed the cryptocurrency industry, forcing upgrades in security measures and stoking debate on governance vulnerabilities.
