The Shibarium bridge, a critical component of the Shiba Inu ecosystem, remains inactive following a significant security breach on September 12, 2025. Blockchain security firm PeckShield initially detected anomalies, prompting an investigation by the Shiba Inu development team.
The attacker successfully manipulated the network's validator system, gaining control over 10 out of 12 validators. This compromise allowed the hacker to approve fraudulent exit requests, resulting in the theft of approximately $2.3 million in assets. The stolen funds included Ethereum (ETH), Shiba Inu (SHIB) tokens, and ROAR tokens.
In response, the Shiba Inu team, led by developer Kaal Dhairya, immediately suspended all bridge operations to prevent further losses. The team is currently prioritizing security containment and system reinforcement before considering any reopening timeline. Users are unable to transfer assets back to Ethereum or other networks indefinitely.
Asset recovery options remain uncertain and under investigation. The team is exploring multiple strategies, including potential use of treasury funds, token burns, or insurance mechanisms. Any proposed solution will require community review before implementation. The team has emphasized that security improvements take precedence over recovery efforts at this stage.
Market impact has been significant, with SHIB's price experiencing substantial declines following the exploit. Technical analysis indicates struggling support levels and resistance at key moving averages. Large holders appear to be reducing positions, contributing to negative netflows from exchanges.