Thursday, July 25, 2024

Jimbos Protocol hacked for over 7.5 Million Dollars using flash loan exploit.

Jimbos Protocol, based on Arbitrum, decided to enlist the assistance of security researchers and on-chain analysts who worked together to investigate similar assaults that attacked protocols like Euler Finance and Sentiment shortly after it became a victim of one.

Jimbos Protocol tweeted on May 28: “We are already working with many security experts and on-chain analyzers that helped with both the Euler Finance and Sentiment attacks. If this isn’t resolved by then, we’ll start collaborating with law enforcement authorities tomorrow at 4 PM UTC.

The previous day, the blockchain security firm PeckShield raised the red flag after learning that an exploiter had bridged the stolen money worth about ETH 4,048, or almost $7.5 million at the time, to Ethereum.

The information suggests that the hacker executed a flash loan by exploiting a protocol code flaw.

Following that, the protocol posted another tweet mentioning its collaboration with security professionals, bridges, and exchangers, resulting in the discovery of “promising leads,” including one particularly noteworthy lead. The protocol expressed its hope that the attacker would choose to cooperate willingly, implying that time was of the essence before their information was passed on and they were left with no other choice.

On May 29, the compromised protocol took to Twitter to convey its readiness to cooperate with the alleged hacker, aiming to find a mutually agreeable solution. The tweet highlighted the desire of the Jimbos Protocol team to prevent anyone’s life from being destroyed but stressed their determination to take appropriate actions if required. The proposed arrangement encompassed both rewards (“carrot”) and repercussions (“stick”).

In a tweet, Jimbos Protocol issued a warning to the attacker, urging them to relinquish their immediate $800k gain and escape unharmed. The message conveyed that if the attacker returns 90% of the funds, no further pursuit would be initiated. However, if they refuse to comply, relentless efforts would be made to ensure their imprisonment. The tweet also provided a secure email address for the hacker to contact Jimbos Protocol.

In March 2023, a flash loan attack against the protocol used in the Euler Finance hack resulted in losing about $200 million of digital assets. Surprisingly, the exploiter has now returned most of the stolen money to the compromised protocol.

The official website for Jimbo Protocol states that “$JIMBO is supposed to function as an ERC-20 token with a semi-stable floor price. From the beginning, $JIMBO has operated independently and is completely functional. After $JIMBO debuts, no more updates or modifications will be made.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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