Shiba Inu’s DeFi platform urges hacker to return funds amid ecosystem-wide token declines
K9 Finance, a decentralized finance protocol built on Shiba Inu’s Shibarium network, has announced a $23,000 bounty to the hacker behind a $2.4 million exploit. The platform urged the attacker to return stolen funds, warning that the bounty will decrease if the offer is not accepted quickly.
Exploit drains $2.4 million from Shibarium bridge
The exploit, which occurred on Saturday, allowed attackers to drain $2.4 million in digital assets after compromising validator signing keys. By using a flash loan to purchase 4.6 million Bone ShibaSwap (BONE) tokens, the attacker temporarily gained majority validator power and authorized a malicious transaction that moved assets out of the bridge.
In an onchain message, K9 Finance stated:
“Bounty is live. Please, act fast. Settlement is atomic when we call recoverKnine(). If you call accept() we cannot cancel the deal. Code is law.”
The $23,000 bounty, paid in 5 Ether (ETH), will remain open for 30 days, though the reward amount will start to decrease after seven days.
Developers respond with security measures
Shiba Inu developer Kaal Dhairya confirmed that the team has already contacted law enforcement but remains open to negotiations with the attacker. In response to the breach, Shibarium developers have paused stake and unstake functions and moved funds from the stake manager into a multisignature-controlled hardware wallet.
“Our top priority is restoring network security and protecting user assets,” Dhairya said, noting that the team is working with security firms Hexens, Seal 911, and PeckShield to investigate the breach.
Shiba Inu ecosystem tokens tumble
The exploit triggered sharp sell-offs across Shiba Inu ecosystem tokens.
- SHIB fell 7%, sliding from $0.0000145 to $0.0000131.
- K9 Finance (KNINE) dropped 10%, from $0.00000287 to $0.00000257.
- BONE plunged 38%, from $0.31 to $0.19.
Analysts say the declines highlight market fragility when DeFi infrastructure is compromised. One market observer commented:
“Even a single exploit can shake investor confidence, especially in meme-token-linked ecosystems. Restoring trust will require visible, swift improvements in security.”
The $2.4 million Shibarium exploit underscores ongoing vulnerabilities in DeFi systems. With K9 Finance offering a $23K bounty for the attacker’s cooperation, the community now watches whether the stolen funds will be returned or if further fallout awaits the Shiba Inu ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
