- Jimbos suffers a cyber attack, losing $7.5 million worth of ETH.
- Jimbos’ native token plummeted by over 40% within six hours following the breach.
- The hack resulted from a flaw in the protocol’s slippage control mechanism.
In a shocking turn of events, the popular Arbitrum liquidity protocol, Jimbos, fell victim to a suspected cyber attack that resulted in the loss of over 4,000 ETH, estimated at approximately $7.5 million.
The incident has sent shockwaves through the crypto community, raising concerns about the security of DeFi platforms. The breach was first reported by PeckShield, a renowned blockchain security firm, through a tweet on their official Twitter account.
According to PeckShield’s analysis, the hack resulted from a flaw in the protocol’s slippage control mechanism for liquidity-shifting operations. This vulnerability allowed the attacker to exploit an imbalanced price range, effectively manipulating the protocol-owned liquidity for profit.
The jimbos protocol, the Arbitrum liquidity protocol, was suspected of being attacked and more than 4,000 ETH (approximately $7.5 million) was stolen. PeckShield: This hack is due to the lack of slippage control of liquidity-shifting operation — such that the protocol-owned…— Wu Blockchain (@WuBlockchain) May 28, 2023
The Jimbos Protocol, built on the Arbitrum network, has gained significant popularity within the DeFi ecosystem due to its innovative approach to liquidity provision. It allows users to pool their funds and earn rewards by providing liquidity to various token pairs.
However, this recent breach has exposed a critical weakness in the platform’s security infrastructure. The native token of the platform, JIMBO, dropped by over 40% within six hours, as shown in a chart shared by the blockchain security firm with the crypto community.
#PeckShieldAlert $JIMBO has dropped -40%https://t.co/fXZPG27zdM pic.twitter.com/zMPs75jUtK— PeckShieldAlert (@PeckShieldAlert) May 28, 2023
Last week, Coin Edition reported a similar blockchain exploit where the popular obfuscation protocol, Tornado Cash, was the target, with 6,000 units of its governance token stolen and swapped for the Ethereum (ETH) coin.
Specifically, Tornado Cash experienced a governance attack, where malicious actors gained control of the protocol and allocated themselves 1.2 million votes through a harmful proposal, causing its native token to fall 35%.
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