According to Shiba Inu developer Kaal Dhairya, Shibarium suffered a $2.4 million flash loan exploit on Sunday after an attacker briefly gained control of its validator system.
Dogecoin (DOGE) and Shiba Inu (SHIB) plummeted in early morning trade on Monday following a multimillion-dollar hack of Shiba Inu’s layer-2 network, Shibarium.
Dogecoin’s price dropped over 9% in early morning trade, and the Shiba token’s price fell nearly 7% in the last 24 hours. On Stocktwits, retail sentiment around Dogecoin moved lower but remained in ‘extremely bullish’ territory with chatter at ‘extremely high’ levels over the past day. Meanwhile, retail sentiment around Shiba Inu trended in ‘neutral’ territory, accompanied by ‘high’ levels of chatter.
According to Shiba Inu developer Kaal Dhairya, Shibarium suffered a $2.4 million flash loan exploit on Sunday after an attacker briefly gained control of its validator system. By borrowing millions of Bone ShibaSwap (BONE) tokens, the hacker manipulated validator keys to push through unauthorized transactions, draining Ethereum and Shiba Inu from the bridge linking Shibarium to Ethereum. In a post on X, he said safeguards tied to validator staking prevented a wider breach and that authorities have been contacted.
Ethereum’s price dipped more than 3% in the last 24 hours. On Stocktwits, sentiment around the cryptocurrency was in ‘bearish’ territory. Other major altcoins, Solana (SOL), Cardano (ADA), and Ripple’s native token XRP (XRP) were also in the red. Solana’s price fell around 4.7%, Cardano’s price was down 6% and XRP’s price was down 3.5%.
The attack weighed broadly on crypto markets. Bitcoin (BTC) slipped below $115,000 after a weekend rebound to $116,000 ahead of the Federal Reserve’s policy meeting later this week. Bitcoin’s price slipped around 1% in the last 24 hours, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day.
The overall cryptocurrency market fell 2% over the last 24 hours. Crypto futures bets saw around $450 million in liquidations over the past 24 hours, according to Coinglass data. Long liquidations totaled around $379 million, and short bets amounted to just $71 million.
Digital asset treasury (DAT) equities also showed caution, edging lower in pre-market trade. The largest corporate holder of Bitcoin, Michael Saylor-backed Strategy (MSTR), fell around 0.34% and the largest publicly traded company with Ethereum on its balance sheet, Bitmine Immersive Technologies (BMNR), was down around 2%.
Bitcoin miners like Marathon Holdings (MARA) and Riot Platforms (RIOT) also moved lower. MARA’s stock fell 0.89%, while RIOT’s stock traded flat. Crypto exchange Coinbase (COIN) edged 0.17% lower.
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