Jimbos Protocol hacked, loses over $7.5M

In an entirely unforeseen twist, the Jimbos Protocol experienced an exploit mere days after completing its Version 2 upgrade. As an Arbitrum-based liquidity protocol, it has fallen victim to cybercriminals who took advantage of a vulnerability.

PerkShield pointed out the attacker managed to exploit the protocol, stealing over 4000 ETH, estimated to be worth more than $7.5 million. The attacker exploited the absence of slippage control in liquidity conversions to execute the hack.

The protocol-owned liquidity became compromised due to deficient slippage control in liquidity-shifting operations. This resulted in an imbalanced price range into which it was invested, making it vulnerable to being exploited through reverse swaps for profit.

The vulnerability has raised concerns regarding the protocol’s security measures and has led many to question its reliability.

In response to the breach, Jimbos Protocol has released a statement acknowledging the issue and assuring users that they are working diligently to address the vulnerability, stating: 

“We are aware of the exploit regarding our protocol and are actively in contact with law enforcement and security professionals. We will release further information when possible”

Users are advised to be cautious and to implement additional security measures to protect their sensitive data.

As investigation into the exploit continues, cyber security experts PeckShield is also urging users of the protocol to remain vigilant and to take all necessary precautions to secure their transactions.

Read also:

DeFi Insurance: The Risks, Benefits & Providers – A Beginner’s Guide 

What do you think of this article? Share your thoughts below.