BONE Price Surges 40% After Shibarium Flash Loan Exploit

Shiba Inu’s layer-2 network, Shibarium, was hit by a coordinated exploit that saw an attacker use a flash loan to gain control over a validator, drain assets from its bridge and trigger a temporary shutdown of staking operations.

The attacker, according to Shibarium developer Kaal Dhariya, bought 4.6 million BONE, the governance token of Shiba Inu’s layer-2 network, using a flash loan. The attacker then gained access to validator signing keys to achieve the majority validator power.

With that power, the attacker signed a fraudulent network state and siphoned assets from the Shibarium bridge, which connects it to the Ethereum network.

Since the BONE is still staked and subject to an unstaking delay, the funds remain locked, giving developers a narrow window to respond and freeze the fund