Jimbos Protocol Has Been Hacked

0
75
Jimbos Protocol

Jimbos Protocol has been added to the list of a growing number of decentralized finance protocol hacks in the crypto industry, as they recently experienced a hack that resulted in a significant loss of funds.

According to PeckShield, a blockchain security firm, this liquidity protocol of the Arbitrum system, was hacked on the morning of 28th May. This attack resulted in the loss of around 4,000 Ether, which has a worth of approximately $7.5 million. Interestingly, the attacker had taken significant advantage of the lack of slippage control on the conversions of liquidity. The liquidity of the protocol is usually invested in a price range that doesn’t need to be equal, which would allow them to create a loophole where the attackers would be able to reverse swap orders for their gain. 

Jimbos Protocol Was Hacked Recently By Attackers

Although Jimbos Protocol was launched less than 20 days ago, it aimed at addressing the liquidity and the volatile token prices through a completely new testing approach. However, the mechanism of the protocol was not developed adequately, which led to a logical vulnerability that further created favorable conditions for the attackers.

As a result, the price of the underlying token went on to plummet by 40%. According to the findings by PeckShield, the attackers went on to extract close to 4,090 ETH from the network of Arbitrum. Subsequently, they utilized the Celer Network, and the Stargate bridge to trade approximately 4,048 ETH from the Ethereum network.

The hack of Jimbos Protocol has reminded the investors of another noteworthy occurrence which involved the hijacking of Tornado Cash, which is a famous privacy-focused protocol. Unknown attackers compromised the system successfully and took out significant quantities of the Tornado Cash tokens.