{"id":15320,"date":"2023-05-29T13:39:53","date_gmt":"2023-05-29T17:39:53","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/jimbos-protocol-hacked-for-over-7-5-million-using-flash-loan-exploit\/"},"modified":"2023-05-29T13:39:54","modified_gmt":"2023-05-29T17:39:54","slug":"jimbos-protocol-hacked-for-over-7-5-million-using-flash-loan-exploit","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=15320","title":{"rendered":"Jimbos Protocol hacked for over $7.5 million using flash loan exploit"},"content":{"rendered":"
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Shortly after it fell victim to a hack, Arbitrum-based Jimbos Protocol has decided to seek the help of security researchers and on-chain analysts who collaborated on investigating similar attacks which targeted protocols such as Euler Finance and Sentiment.<\/p>\n

\u201cWe are already working with multiple security researchers and on-chain analysts who helped with both the Euler Finance and Sentiment exploits,\u201d Jimbos Protocol said<\/a> in a tweet on May 28. \u201cWe will start working with law enforcement agencies tomorrow by 4PM UTC if this isn\u2019t sorted out by then.\u201d<\/p>\n

Earlier that day, blockchain security company PeckShield rang<\/a> the alarm bells after it discovered that an exploiter had bridged the stolen funds, valued at some ETH 4,048, or about $7.5 million at that time, to Ethereum. \u00a0<\/p>\n

The available data indicates that the hacker used a loophole in the protocol’s code to carry out a flash loan.<\/p>\n

In a subsequent tweet<\/a>, the protocol said that its cooperation with security experts, bridges, and exchanges has enabled the team to identify \u201cpromising leads, and one in particular.\u201d<\/p>\n

\u201cWe hope the attacker will *voluntarily* cooperate – before they have no choice but to once we pass their info,\u201d according to the protocol.\u00a0<\/p>\n

On May 29, the hacked protocol tweeted<\/a> its offer to the suspected hacker, declaring that it was open to reaching a mutually satisfactory understanding with them, as Jimbos Protocol\u2019s team \u201cdon\u2019t want anyone’s lives ruined, but given no choice, we will do what we say.\u201d The offer comprises both a carrot and a stick.\u00a0<\/p>\n

\u201cTo the attacker: keep a fast $800k payday, and live to tell the tale. We won’t pursue you if you send back the 90%. But if you don’t, we won’t stop until you’re behind bars,\u201d Jimbos Protocol said in a tweet<\/a> in which it also invited the hacker to communicate with the protocol via a secure e-mail address.\u00a0<\/p>\n

The Euler Finance hack saw the protocol fall victim to a flash loan attack in March 2023, causing the loss of\u00a0around $200 million\u00a0worth of digital assets. However, in a surprising development, the exploiter has returned a major portion of the stolen funds to the hacked protocol.<\/p>\n

Jimbo Protocol\u2019s official site states \u201c$JIMBO is designed to work as an ERC-20 token with a semi-stable floor price. $JIMBO runs autonomously from day 1, with everything fully functional. There will be no future updates or changes to $JIMBO after it launches.\u201d<\/p>\n<\/p><\/div>\n