- Attackers take advantage of the loophole created by Jimbos’ investment in an imbalanced price range due to a lack of slippage control.
- The Arbitrum-based Protocol announced its intentions to involve law enforcement agencies in apprehending the hackers.
- The attackers made away with 4,090 ETH worth $7.5 million, dealing a huge blow to the new DeFi protocol.
The cybercriminals know no days off as they have once again struck on a DeFi Protocol, carting away a large sum of funds. Jimbos Protocol is the latest Decentralised Finance firm to be affected, as the firm reportedly lost $7.5 million in ETH.
According to PeckShield, a blockchain security company, hackers gained access to the Arbitrum System-based DeFi protocol on May 28, stealing over 4,090 ETH worth $7.5 million.
PeckShield tweeted on May 28, alerting the crypto community of the ill luck that had befallen the DeFi protocol, detailing how the attackers could gain control of Jimbos Protocol.
According to the information provided, there needed to be more slippage control of liquidity due to the changing operations. Jimbos was invested in an unequal and imbalanced price range which the criminals noticed and took advantage of. The attackers recognized the loophole and reverse-swapped the orders for their gain.
The Arbitrum-based protocol announced that it was aware of the attack on its platform and was already in contact with law enforcement agencies. The protocol mentioned that if it had not been able to resolve the issue by 4 PM UTC on May 29, it would have no choice but to start working with law enforcement agencies to catch the hackers.
The image shared by PeckShield revealed that the hackers withdrew 4,000 Ether from Arbitrum and used Celer Network and Stargate bridge to transfer 4048 Ether. Due to this tragedy, the price of Jimbo’s token (JIMBO) was down by 40%.
Jimbos Offers Hacker $800k and Threatens Involving Law Enforcement Agencies
On May 29, Jimbos Protocol took to Twitter to send a message to its exploiters, advising that they voluntarily surrender 90% of the stolen crypto assets and keep $800k to themselves.
The DeFi protocol claims that its team would only relent once they had caught the hackers and had been put behind bars. Jimbos warned that it had contacted Euler Finance and Sentiment exploits.
After its proposed deadline, the Arbitrum-based protocol shared some good news, announcing that it had identified some promising leads due to the help of security experts and exchanges. The protocol stated that it did not take pleasure in ruining anyone’s life; however, if cornered as it has been, it would have no choice but to retaliate.
Conclusion
Jimbos Protocol is the latest DeFi protocol to be hacked; multiple protocols in the DeFi ecosystem have fallen victim to hackers and lost crypto assets worth millions of dollars.
