Decentralized finance (DeFi) platform Jimbos Protocol has become the latest victim of a hacking incident, resulting in a significant loss of funds. The attack took place on May 28, targeting the Jimbos Protocol, which operates as the liquidity protocol of the Arbitrum system. Security firm PeckShield reported that the attacker made off with approximately 4,000 Ether, valued at around $7.5 million during the time of the attack.
Logical Vulnerabilities Exploited
Jimbos Protocol is a recently launched decentralized finance (DeFi) protocol that seeks to address liquidity and volatile token prices through its unique approach. Built on the Arbitrum system, Jimbos Protocol aims to provide innovative solutions for enhancing liquidity in the crypto market. With its testing methods and mechanisms, Jimbos Protocol aims to create a more stable and efficient environment for users to participate in DeFi activities. As a new player in the DeFi space, Jimbos Protocol brings fresh ideas and perspectives to the ever-evolving world of decentralized finance, offering potential benefits and opportunities for investors and traders alike. The Jimbos Protocol has become the latest victim of a hacking incident, resulting in a significant loss of funds. The attack took place on May 28, targeting Jimbos Protocol, which operates as the liquidity protocol of the Arbitrum system. Security firm PeckShield reported that the attacker made off with approximately 4,000 Ether, valued at around $7.5 million during the time of the attack. The breach exploited a vulnerability in the protocol’s slippage control mechanism for liquidity conversions. By taking advantage of the uneven price range within the liquidity, the attacker executed reverse swap orders to their advantage. Jimbos Protocol, which had launched less than 20 days prior, aimed to tackle liquidity and volatile token prices through an innovative testing approach. However, it appears that the protocol’s development was insufficient, leaving it susceptible to logical vulnerabilities that malicious actors exploited. Consequently, the token associated with the protocol, Jimbo (JIMBO), experienced a steep 40% price drop in response to the incident.
PeckShield’s investigation revealed that the attackers managed to withdraw 4,090 ETH from the Arbitrum network. They then utilized the Stargate bridge and the Celer Network to transfer approximately 4,048 ETH from the Ethereum network, further complicating the recovery process.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only.
