Shiba Inu Update: Team Freezes 4.6M BONE Amid New SHIB Upgrades

The Shiba Inu team announced it had frozen 4.6 million BONE tokens linked to a hack. This came after PeckShield highlighted an ongoing attack on the Shibarium bridge. Meanwhile, the SHIB ecosystem has also unveiled new upgrades in an effort to enhance the top meme coin’s utility, a move that could spark higher prices. 

Shibarium Bridge Attack Triggers Emergency Freeze

The hack first came to light when blockchain security firm PeckShield flagged suspicious activity to Shiba Inu lead developers. 

Shortly after, developer Kaal Dhairya confirmed that the team was probing the matter. In an update, the dev revealed that attackers executed a flash loan exploit to buy 4.6 million BONE tokens. By compromising validator signing keys, the attackers gained majority control and attempted to drain assets from the Shibarium bridge.

Because the stolen tokens were delegated to Validator 1, they remain locked due to staking restrictions. This gave the team a chance to freeze them. As part of its damage control plan, Shiba Inu temporarily paused staking functions.

They transferred their stake manager funds to a hardware wallet secured by a multisig and began auditing the integrity of all validator keys. The team stressed that protecting community assets is the top priority.

Investigations are ongoing with the help of security firms Hexens, Seal 911, and PeckShield. Authorities have also been notified. Notably, the team extended an unusual offer to negotiate with the attacker. They promised not to press charges and even offered a bounty if the stolen funds were returned.

This latest episode comes on the heels of another security alert. The Shiba Inu team had warned holders about scammers exploiting expired Discord links to create fake servers. Once inside, unsuspecting users were tricked into “verifying” their wallets. This led to entire balances of SHIB and other tokens being drained in minutes.

Shibarium Bridge’s Role in Expanding SHIB’s Layer-2 Ecosystem

The Shibarium bridge is central to the project’s growth strategy. It allows smooth transfer of SHIB, BONE, LEASH, and other tokens between Ethereum and Shibarium.

By reducing fees and improving transaction speeds, the bridge promotes the project’s push into decentralized finance, gaming, and metaverse applications.

In other developments in the ecosystem, Shiba Inu shared new details about the upcoming migration of its LEASH V2 token. Developer Kaal Dhairya explained that the process will use a fixed ratio model. This would allow LEASH V1 holders to transition seamlessly to LEASH V2.

Furthermore, ShibaSwap recently released a major upgrade. The redesign focused on unifying multi-chain trading and improving liquidity management. This is part of an ongoing effort to make Shiba Inu a central player in DeFi. 

The new breach also echoes larger industry concerns. In August,  blockchain intelligence firm Arkham uncovered the largest Bitcoin theft in history. It involved more than 127,000 BTC drained from a Chinese mining pool. 

The freezing of 4.6 million BONE provides temporary relief on the price of the token. The token has risen by 41% over the last 24 hours.