Shibarium Hack Fallout: Shiba Inu Team Criticized For Not Reporting Breach

Overview

The Shibarium Bridge hack, which reportedly drained over $3 million from users, remains unresolved three months after the incident. The lack of formal law enforcement action has led to criticism of the Shiba Inu team for not reporting the breach, despite clear evidence pointing to the attacker’s activities.

Details of the Hack

On-chain investigators have traced the funds stolen from the Shibarium Bridge, revealing a detailed laundering process. The attacker moved 260 Ether through Tornado Cash and subsequently routed 232.49 ETH to deposit addresses at KuCoin. The laundering path involved 111 wallets and 45 unique deposits at KuCoin, as detailed by a community investigator known as Shima. A significant breakthrough in the investigation came from a small transfer of 0.0874 ETH, which linked previously hidden wallets and enabled further tracing of the operation.

Despite this progress, the Shiba Inu team has not filed a police report, which has hindered the potential for recovery. Exchanges such as KuCoin have stated that they require a formal law enforcement case number before they can take action, including freezing the suspected funds. Community members and investigators have expressed frustration over the lack of a police report, questioning why the Shiba Inu team has not pursued legal channels.

Challenges to Recovery Efforts

Tracing cryptocurrency transactions through mixers can be complex, even when the blockchain provides clues. Exchanges often require legal authorization, such as subpoenas or case numbers, to disclose account information. This legal barrier can stall recovery efforts, leaving strong leads from community investigations unresolved.

After Shima provided the findings to the Shiba Inu team, community representatives, including those from K9 Finance, reached out to KuCoin to request action on the frozen funds. However, KuCoin reiterated that without a police report, they could not legally lock the accounts or share internal records.

Call for Formal Action

In light of the slow institutional response, Shima has offered to share the complete dataset and methodology used in the investigation with victims and any law enforcement agency willing to engage. Victims may need to file local complaints to generate the necessary case numbers for exchanges to act.

Critics, including Shane Cook, founder of Pulse Digital Marketing, have raised concerns about the Shiba Inu team’s inaction regarding filing an official complaint. Although the team acknowledged the breach and contacted security firms, the absence of a legal filing may hinder cooperation from exchanges in recovery efforts.

Impact on the Crypto Market

• The unresolved Shibarium Bridge hack raises concerns about the security of decentralized finance platforms.
• The criticism of the Shiba Inu team may impact community trust and investor confidence in the project.
• The incident highlights the importance of formal legal actions for effective recovery in cryptocurrency breaches.
• The case may encourage other projects to prioritize legal compliance and proactive measures in response to hacks.
• Ongoing challenges in tracing and recovering stolen funds could lead to calls for improved regulatory frameworks in the crypto space.

Updated: 12/2/2025, 7:22:47 PM