TLDR

  • Shiba Inu developer Kaal Dhairya responded to claims that the team neglected to report the Shibarium Bridge hack to authorities.
  • Dhairya verified that the team had formally reported the incident and supplied federal agents with key details, including technical findings and OSINT data.
  • The Shiba Inu team has implemented major technical recovery steps, such as security enhancements and third-party audits.
  • A new compensation program called Shib Owes You (SOU) has been rolled out to reimburse users impacted by the hack.
  • The SOU system uses NFTs to track the compensation due to users, ensuring transparency and real-time updates on repayment progress.

A recent dispute emerged after the ecosystem faced a significant breach that siphoned over $3 million in funds. Claims began circulating that 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 pushed back against claims that the Shiba Inu team did not report the hack to authorities. He stated firmly that the incident had been officially reported, with federal agents interviewing him as part of the investigation. “I provided agents with the required information, including technical findings and OSINT,” Dhairya said. He emphasized that the investigation is ongoing but would not disclose the case ID to the public.

While many doubted the legitimacy of the team’s efforts, Dhairya stood his ground. He dismissed requests for the case ID, labeling them 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 took emergency measures to minimize further damage. Withdrawals were temporarily halted, but the Plasma Bridge was partially reopened in October. Dhairya noted that technical recovery was nearly complete, and the team had introduced several security upgrades.

The Shiba Inu team worked to boost 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 protecting 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 for liquidity. Dhairya emphasized that the program’s success 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 hack.