Shiba Inu's Shibarium Recovery System 'SOU' Launches Amid Controversy Over K9 Finance Exclusion

4 hour ago 2 sources neutral

Key takeaways:

  • The SOU rollout controversy highlights ongoing governance and transparency risks within the Shiba Inu ecosystem.
  • K9 Finance's sunset decision signals potential for further project attrition on Shibarium, pressuring SHIB's utility narrative.
  • Investors should monitor SHIB's price for volatility as the compensation dispute could erode community trust.

The Shiba Inu ecosystem has launched its long-awaited compensation framework, Shib Owes You (SOU), aimed at assisting users impacted by the September 2025 Shibarium bridge hack. The initiative, described as a cryptographic proof of claim recorded permanently on the Ethereum blockchain, is designed to support affected users with payouts, donations, and occasional rewards.

However, the rollout has been immediately clouded by controversy. K9 Finance DAO, which claims to be the largest impacted community from the hack, has publicly alleged it was omitted from the SOU NFT claim process. The project cited a year-end 2025 message from Shiba Inu developer Kaal Dhairya, which hinted at a desire to make all affected users whole, arguing that its exclusion contradicts this earlier assurance.

The reason for K9 Finance's exclusion has not been officially disclosed by the Shiba Inu team. This development follows K9 Finance's own announcement in late January that its DAO had approved an orderly and permanent sunset of all its products deployed on Shibarium, effective February 25, 2026, a decision made in the wake of the September exploit. The project has urged its users to withdraw assets from its Bonecrusher product before that date.

Amid the dispute over transparency and eligibility, Shiba Inu team member Lucie issued a crucial scam warning as SOU went live. She cautioned users about fake SOU portals designed to drain wallets and emphasized using only the official portal for claims.

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