A security breach in the Shiba Inu (SHIB) ecosystem in September 2025 resulted in the theft of 224.57 ETH and 926 billion SHIB, valued at approximately $2.4 million. Hackers exploited governance vulnerabilities in Shibarium, a layer-2 solution, using flash loans to control over two-thirds of validator votes. In response, the Shiba Inu team froze staking functions and secured funds in hardware wallets, but the incident underscored the need for enhanced security measures, such as multi-signature validator keys. The breach has raised concerns about the security of meme coins, with analysts noting that 68% of rug pulls in 2025 are expected to target this sector. Investors are advised to implement strict risk management strategies, including position sizing, security audits, and liquidity checks. Despite efforts by the Shiba Inu team to recover stolen funds and bolster security, the breach has led to a significant drop in daily transaction volume, reflecting a loss of user trust.