K9 Finance indicates potential termination of partnership with Shibarium

K9 Finance's Ultimatum: K9 Finance has threatened to end its partnership with the Shiba Inu team unless they compensate users affected by a September hack by January 6, 2026, after losing over $700,000 in assets.

Impact of the Hack: The breach led to a significant decline in the SHIB token's price, dropping 36% following the incident, while K9 Finance claims to have followed all recovery protocols requested by the Shiba Inu team.

Hacker's Actions: The attack involved a flash loan that allowed the hacker to gain control over validator voting power, resulting in the theft of approximately $2.8 million in various cryptocurrencies.

Market Reactions: Despite the turmoil, there are signs of improving fundamentals for Shiba Inu, including a 170% increase in token burn activity and a significant rise in whale holdings, indicating potential market recovery.