Shibarium Resumes Activity After $4M Exploit

The Shiba Inu network recently hit a major problem when its Layer 2 platform, Shibarium, went offline after a $4 million exploit. The pause raised doubts about security and long-term stability. However, after days of investigation, repairs, and added protections, the network announced it has now been restored. The network’s return has lifted community sentiment and sparked new predictions of a strong SHIB rally. 

Exploit Forces Immediate Shutdown 

Shibarium’s troubles began when a hacker carried out a sophisticated exploit that drained over $4 million in assets. 

The exploit was carried out using a flash loan that gave the attacker temporary control over 4.6 million BONE tokens, Shibarium’s governance asset. With this stake, the hacker was able to seize 10 of 12 validator keys. 

This access was enough to trick Heimdall, the chain’s consensus layer, into accepting fraudulent checkpoints.

Developers responded immediately by shutting down the bridge, halting all activity. This decisive move prevented further losses and gave the team time to work with blockchain security firm Hexens.io on a full-scale review.

Shibarium Developers Boost Security and Upgrade Ecosystem 

Over a 10-day period, the developers successfully rescued the 4.6 million BONE tokens and rotated validator keys to stop similar breaches in the future. 

They introduced new security measures that blocked suspicious contracts and consolidated RPC endpoints through a partnership with dRPC.org. Withdrawal delays were extended from one checkpoint to thirty, and more than 100 contracts were moved to secure wallets. 

They also deployed new monitoring systems with real-time anomaly detection to strengthen protection. While repairing Shibarium, developers also worked on other parts of the Shiba Inu ecosystem. 

ShibaSwap, the community’s decentralized exchange,  was redesigned to allow multi-chain trading and better liquidity control. The Shibarium developer hub was also upgraded with clearer documentation for node operators and builders. This is aimed at drawing more contributors and strengthening decentralization.

Unlike some other projects that got exploited, the team refused to negotiate or offer the hacker a bounty, saying the attack was intentional. Instead, Shibarium’s team prioritized restoring bridge operations and announced that reimbursement plans for affected users would be shared soon.

A Renewed Bullish Outlook for SHIB

Shibarium’s return has come at the same time as stronger signs in the SHIB market. Big investors have added over 62 billion tokens to their wallets. At the same time, exchange balances have gone down, showing that selling pressure is easing.

Crypto analysts are now pointing to bullish chart patterns. Javon Marks, a well-followed market watcher, said SHIB could rally over 150% to $0.000032, citing a classic bullish divergence that shows growing demand. 

Another analyst said SHIB is picking up speed, with more buyers driving its momentum. Earlier this year, some projections even suggested SHIB could aim for $0.01 by 2025.