Shiba Inu’s Layer-2 Network Breached, Over $1 Million Each in Ethereum, SHIB Stolen: How It Was Done
The Shiba Inu (CRYPTO: SHIB) team posted a detailed account of the hacking incident that impacted its ecosystem on Saturday, including details about the assets affected and subsequent actions taken.
Flash Loan Attack On Shibarium
According to the official X account tied to the SHIB token, the attacker acquired 4.6 million Bone ShibaSwap (CRYPTO: BONE), the governance token of Shiba Inu’s Layer 2 network Shibarium, through a flash loan and momentarily gained validator voting power. This allowed them to push “malicious” software on Shibarium.
Shiba Inu said that without the flash loan, the attacker wouldn’t have achieved the required 2/3 majority.
Flash loans are a type of uncollateralized loan, where assets are borrowed and returned within the same blockchain transaction. They are commonly used for arbitrage, but attackers have been found to use them in conjunction with other techniques to defraud users.
The attacker then repaid the transaction using assets drained from the bridge, specifically 224.57 Ethereum (CRYPTO: ETH), worth …
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