Arbitrum-based Jimbos Protocol hacked for $7.5M, JIMBO value drops 40%

• The Jimbos Protocol group acknowledged the hack and mentioned it had contacted regulation enforcement.
• Blockchain safety platform PeckShield famous the assault adopted a compromise on Jimbos liquidity conversion mechanism.
• The value of JIMBO, the underlying liquidity token, fell by 40% because the market reacted to the hacking information.

Arbitrum-based Jimbos Protocol was hacked on the morning of Might 28, ensuing within the lack of over 4,000 Ether (ETH), value roughly $7.5 million on the time.

On account of the hack, the worth of the underlying token, Jimbo (JIMBO), has plummeted by 40%.

One other day, one other hack

Malicious assaults inside the cryptocurrency sector proceed to be a blot on the rising trade, with attackers exploiting vulnerabilities to steal property value hundreds of thousands of {dollars} from platforms and customers. The most recent is an assault that exploited Jimbos’ liquidity conversion mechanism to see 4,090 ETH tokens stolen.

Jimbos Protocol is a comparatively new protocol that was launched lower than 20 days in the past. The protocol goals to deal with liquidity and unstable token costs via a brand new testing strategy. Nonetheless, it appears just like the protocol’s mechanism was not adequately secured, with the consequence being the vulnerability that was exploited by the hacker.

In response to blockchain safety and information agency PeckShield, the hacker was in a position to reverse swap orders for their very own acquire, ensuing within the lack of funds.

The corporate tweeted its evaluation following the unlucky occasion:

“This hack is as a result of lack of slippage management of liquidity-shifting operation — such that the protocol-owned liquidity is invested right into a skewed/imbalanced value vary, which is exploited in reverse swap for revenue.”

The Jimbos Protocol group introduced it was “conscious” of the assault and that that they had contacted regulation enforcement and blockchain safety professionals.

Earlier this month, as reported right here, an attacker compromised the Twister Money protocol and stole 483,000 TORN tokens. They then moved to swap these tokens into ETH. The attacker managed their exploit by seizing management of the Twister Money governance system. 

TORN value fell 50% in response to the information.