TLDR
- Shiba Inu developer Kaal Dhairya addressed allegations about the team failing to report the Shibarium Bridge hack to authorities.
- Dhairya confirmed that the team reported the incident and provided federal agents with essential details, including technical findings and OSINT.
- The Shiba Inu team has implemented significant technical recovery measures, including security upgrades and third-party audits.
- A new compensation initiative called Shib Owes You (SOU) has been launched to compensate users affected by the hack.
- The SOU system uses NFTs to track the compensation owed to users, ensuring transparency and real-time updates on repayments.
A recent controversy emerged after the Shiba Inu ecosystem faced a major breach, draining over $3 million in funds. Allegations surfaced suggesting the Shiba Inu team failed to report the Shibarium Bridge hack to law enforcement. In response, Kaal Dhairya, a lead developer in the Shiba Inu ecosystem, addressed these concerns and clarified the team’s actions.
Dhairya Refutes Allegations on Reporting the Hack
Dhairya responded to claims that the Shiba Inu team failed to report the hack to authorities. He asserted that the incident had been officially reported, with federal agents interviewing him as part of the investigation. “I provided agents with necessary details, including technical findings and OSINT,” Dhairya said. He stressed that the investigation is ongoing, but would not disclose the case ID to the public.
While many questioned the authenticity of the team’s efforts, Dhairya remained firm in his stance. He criticized the demand for the case ID, labeling it as an attempt by opportunists to gain attention during a crisis. According to Dhairya, such requests did not come from users seeking help, but from those looking to exploit the situation.
Shiba Inu Team’s Progress on Technical Recovery
In the aftermath of the hack, the Shiba Inu team implemented emergency measures to minimize further damage. Withdrawals were temporarily halted, but the Plasma Bridge was partially reopened in October. Dhairya noted that the technical recovery was nearly complete, and the team had introduced several security upgrades.
The Shiba Inu team worked to enhance the security of the Shibarium Plasma Bridge and migrated over 100 critical contracts to hardware custody. Comprehensive third-party audits were conducted to further secure the ecosystem. With these measures in place, the team is steadily restoring full operations, focusing on securing user funds.
New Compensation Framework Launched for Affected Users
To compensate users who lost funds in the hack, the Shiba Inu team launched a new initiative called Shib Owes You (SOU). Under this system, each affected user will receive an SOU NFT, which serves as an on-chain record of the amount owed. “The claims are written directly to the Ethereum blockchain, ensuring transparency,” Dhairya explained.
As repayments are made, the NFT’s principal balance will decrease, allowing users to track their refunds. Furthermore, users can transfer, merge, or sell their SOU NFTs for liquidity. Dhairya emphasized that the success of the program relies on consistent revenue inflow to the ecosystem, ensuring compensation for affected users.
The Shiba Inu team plans to prioritize compensation over other revenue allocations, including non-profits and token burns. Projects failing to generate revenue or reach break-even will be paused to redirect resources to the recovery process. The focus will now be on restoring trust and compensating those affected by the Shibarium hack.
