Shibarium Cross-chain Bridge suffered a flash loan attack, losing $2.4 million

According to ChainCatcher, the Shibarium cross-chain bridge connecting layer 2 network Shibarium and Ethereum was attacked by a flash loan on Friday and about $2.4 million of ETH and SHIB were stolen. After the incident, Shiba Inu developers restricted some activity on the network. The attacker borrowed 4.6 million BONE (Shibarium’s governance token) through Lightning Loan and suspected of obtaining 10 of the 12 validator signature keys, thus gaining two-thirds of the majority control. The attacker then took advantage of the privilege to withdraw about 224.57 ETH and 92.6 billion SHIBs from the Shibarium cross-chain bridge contract and transfer the funds to their personal address. These funds are about $2.4 million at current prices. As a countermeasure, Shiba Inu developers suspended the pledge and unstake functions on the network, effectively freezing the attacker's BONE borrowed through Lightning loans (these tokens themselves have unstaked delay mechanisms), thus cutting off most of their control. The attackers also ended up holding a large number of K9 Finance-related KNINE tokens worth approximately $700,000. But when the attacker tried to sell KNINE, K9 Finance DAO stepped in and blacklisted its addresses, making these tokens unsold.