BONE Price Jumps 40% Amid Shibarium Flash Loan Incident

BONE Jumps 40% After Flash Loan Attack on Shibarium

Shiba Inu’s layer-2 network, Shibarium, suffered a flash loan exploit on Wednesday, enabling an attacker to gain majority validator control, drain bridge funds, and temporarily halt staking.

According to Shibarium developer Kaal Dhariya, the attacker acquired 4.6 million BONE tokens—the network’s governance token—via a flash loan, which granted access to validator signing keys and majority control.

With this power, the attacker signed a fraudulent network state and siphoned assets from Shibarium’s bridge linking it to Ethereum. Since BONE is staked and subject to an unstaking delay, the funds remain locked, giving developers a window to respond.

In reaction, Shibarium paused all staking and unstaking functions, moved remaining assets to a 6-of-9 multisig hardware wallet, and launched an internal investigation. The breach’s source—whether a compromised server or developer machine—is still unclear, with estimated losses near $3 million.

Security firms Hexens, Seal 911, and PeckShield are assisting, and law enforcement has been notified. Dhariya also extended a conditional offer to the attacker: return the funds, and no charges will be pressed, with a potential small bounty.

The market reacted sharply: BONE initially more than doubled in value before settling at a roughly 40% gain, while SHIB rose over 8%.

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