Shiba Inu Issues Final Ultimatum: 20 ETH Bounty or Legal Action for Shibarium Hacker
📌 Shiba Inu's Last-Ditch Effort: A 20 ETH Bounty
Shiba Inu and K9 Finance DAO are intensifying their efforts to recover funds lost in the recent Shibarium bridge exploit. They have issued an on-chain ultimatum to the hacker, offering a 20 ETH bounty for the return of the frozen KNINE tokens. This offer is being communicated directly to the attacker via Ethereum Input Data Messages (IDM).
The IDM, sent on November 3, 2025, details the terms: a trustless method for returning the KNINE tokens in exchange for the bounty. The message clearly states, “Dear Shibarium Bridge Hacker… New 20 ETH bounty to return stolen KNINE tokens,” including the contract address and the atomic settlement process. According to the message, “Settlement is atomic when we call recoverKnine(). KNINE is transferred back to Shibarium bridge and ETH is transferred to you.” The offer has a limited time frame, with the bounty decreasing after 21 days (Nov 18) and expiring completely after 28 days (Nov 25).
The Bounty Contract: Details and Mechanics
⚖️ The 20 ETH bounty is held on Ethereum at contract address 0x5EA2…D4d0, verified as “KnineRecoveryBountyDecayAcceptMultiFunder.” This contract, created by k9dev.eth, allows the attacker to authorize the bounty contract to spend KNINE. The attacker can also explicitly call an accept() function to secure the deal before the Shiba Inu team triggers the recoverKnine() settlement. This "code is law" approach aims to ensure a trustless and transparent exchange.
Public Pressure and Urgency
Shiba Inu developer Kaal Dhairya has publicly urged the hacker to accept the offer. In a post on X, Dhairya wrote, “Yo, Shibarium bridge attacker, wake up—grab free cash before the offer expires this time and do something right.” This message follows weeks of damage control related to the validator-key compromise and ongoing investigations.
📌 Background: The Shibarium Bridge Exploit
The recent events trace back to mid-September when a sophisticated flash-loan-aided validator capture allowed an attacker to manipulate the Shibarium bridge state and drain assets. This led to containment measures and an initial bounty offer of 5 ETH, which was subsequently rejected by the hacker.
⚖️ K9 Finance has stated that this 20 ETH offer is the final attempt to resolve the situation without resorting to litigation. The team emphasized in The Shib Magazine that this contract fulfills a public promise to extend a larger bounty after the initial 5 ETH proposal was declined. The exploiter reportedly counter-demanded 50 ETH, which K9 refused, citing that the KNINE tokens in question are blacklisted and unusable. The atomic exchange mechanism of the new contract aims to bypass direct communication and complete the transaction securely once approved.
Avoiding Scams and Misinformation
The K9 team has cautioned the community to avoid scams related to the bounty. They’ve warned against fake claim portals and phishing attempts, confirming there will be no token migration or "v2" associated with this incident. It’s essential for investors to remain vigilant and verify all information through official channels.
📊 Market Impact Analysis
⚖️ The Shibarium bridge exploit and subsequent bounty offer have introduced volatility into the Shiba Inu ecosystem. While the immediate price impact may be limited, the long-term effects could influence investor sentiment and confidence in the network's security. At press time, Shiba Inu traded at $0.00000907.
The handling of this situation is critical for Shiba Inu's reputation. A successful recovery could restore confidence, while a failure could lead to further uncertainty and potential price declines. The outcome will likely impact not only Shiba Inu but also related projects within the Shibarium ecosystem.
Key Stakeholders' Positions
Here's a summary of the key stakeholders involved and their positions:
| Stakeholder |
Position |
| Shiba Inu Team |
Seeking resolution; offering bounty |
| K9 Finance DAO |
Facilitating bounty; warning against scams |
| Hacker |
Yet to accept or reject the bounty offer |
🔮 Future Outlook
The next few weeks will be critical in determining the outcome of this situation. If the hacker accepts the bounty, it could signal a positive resolution and restore some confidence in the Shibarium bridge. However, if the offer expires, legal action and further investigations are likely to follow, potentially prolonging the uncertainty and impacting market sentiment.
⚖️ The regulatory landscape may also play a role, with increased scrutiny on bridge security and incident response protocols. This could lead to stricter compliance measures and greater emphasis on security audits for DeFi projects.
📌 🔑 Key Takeaways
- Shiba Inu and K9 Finance DAO have issued a final 20 ETH bounty to the Shibarium bridge exploiter.
- The bounty offer expires in 28 days (Nov 25), with a decrease starting after 21 days (Nov 18), creating a limited window for resolution. Investors should closely monitor these deadlines.
- The outcome of this situation will significantly impact investor confidence and the future of the Shibarium ecosystem.
- The team is warning against scams and misinformation, emphasizing the importance of verifying information through official channels.
- Failure to recover the funds could lead to legal action and increased regulatory scrutiny.
🔮 Thoughts & Predictions
The Shiba Inu team's aggressive approach, using an on-chain bounty with a ticking clock, is a high-stakes gamble. The hacker's decision within the next few weeks will be a defining moment for the project's credibility. If the bounty is rejected, the ensuing legal battles could drag on for months, creating prolonged uncertainty and potentially mirroring the drawn-out proceedings often seen in traditional finance's recovery efforts, further suppressing SHIB's price. However, a successful recovery would send a strong signal of resilience and could catalyze a short-term rally, perhaps pushing SHIB back above the $0.00001 level as investor confidence returns.
🎯 Investor Action Tips
- Monitor the hacker's Ethereum address (involved in the exploit) for any movement of KNINE tokens or interaction with the bounty contract.
- Set price alerts for SHIB to capitalize on potential volatility spikes, both positive (if the bounty is accepted) and negative (if the deadline passes without resolution).
- Diversify your portfolio to mitigate risks associated with a single project, especially during times of uncertainty.
📘 Glossary for Investors
⚖️ Atomic Swap: A smart contract functionality that allows the simultaneous exchange of one cryptocurrency for another between two parties, ensuring that either both parties receive their respective assets or neither does, thus avoiding the risk of one party not fulfilling their obligation.
🧭 Context of the Day
Today's Shibarium bounty deadline underscores the critical need for enhanced DeFi security protocols and rapid incident response mechanisms to protect investor assets.
