An influential crypto ecosystem founder recently took to public criticism of <a href="https://share.google/bXABsR6LqnrHS6luW">Shiba Inu</a> (SHIB) development team's handling of Shibarium bridge hack, questioning their failure to report theft to law enforcement authorities immediately. The hack resulted in approximately $4 million worth of stolen tokens such as SHIB and ETH being lost and revealed significant vulnerabilities within Layer-2 network's security architecture.

Critics have focused on the ethical and legal responsibilities of project teams after suffering significant financial loss, contending that prioritizing internal negotiations or offering bonuses over official reporting sets an undesirable precedent in decentralized spaces.
<h2>Controversy Over Reporting Protocol</h2>
[embed]https://twitter.com/MRShimamoto/status/1995582570650902587[/embed]

One source of criticism was <a href="https://www.cryptoknowmics.com/news/shiba-inu-capitulation-crisis-avoided-on-chain-data-signals-market-floor/">Shiba Inu</a> team's initial damage control strategy of offering an amnesty payment in exchange for returning stolen funds quickly to them, something common within DeFi space to quickly recover assets quickly; critics, however, argued that an attack of such magnitude necessitates mandatory collaboration with authorities such as FBI or regulatory bodies.

At its heart lies the fear that failure to involve law enforcement may send the signal that projects prioritize market image and legal entanglement over pursuing criminal justice for theft of user assets. This decision has ignited a heated discussion within the community regarding best practices for security incident response in decentralized autonomous organizations (DAOs) and pseudonymous development teams.
<h2>Shibarium Auxiliaries Limited Security and Trust Implications</h2>
Analysts have confirmed that the Shibarium exploit, in which an attacker gained majority validator control through an advanced flash loan attack, has already shaken investor trust. Shiba Inu core developer Kaal Dhairya acknowledged the complexity of the situation while assuring investors that containment measures had been implemented - including freezing his position in BONE tokens.

However, the continued lack of legal action taken after confirmation of theft casts further doubt upon a project's governance and commitment to transparency. For a Layer-2 network hoping to serve as an exemplar platform for Decentralized Finance (DeFi), an unwillingness or hesitation in using all available legal means - including legal ones - to safeguard user funds could undermine long-term trust essential for institutional adoption and ecosystem expansion.

Crypto Founder Critiques Shiba Inu Team's Failure to Report Shibarium Hack

A crypto founder publicly questioned the Shiba Inu team’s decision not to immediately report the $4 million Shibarium bridge exploit to law enforcement authorities.

Crypto Founder Critiques Shiba Inu Team's Failure to Report Shibarium Hack

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