Jimbos Protocol hacked for $75M, JIMBO price down 40%
- The team behind Jimbos Protocol has acknowledged the hack and stated that it has contacted law enforcement.
- According to PeckShield, a blockchain security platform, the attack was a result of a compromise on Jimbos’ liquidity conversion mechanism.
- Following news of the hack, the price of JIMBO, the underlying liquidity token, fell by 40%.
On the morning of May 28th, Jimbos Protocol, which is based on Arbitrum, was hacked, resulting in a loss of over 4,000 Ether (ETH), worth approximately $7.5 million at the time.
As a result of the hack, the price of Jimbo (JIMBO), the underlying token, has plummeted by 40%.
Another day, another hack
Malicious attacks within the cryptocurrency sector continue to be a problem for the growing industry, with attackers exploiting vulnerabilities to steal assets worth millions of dollars from platforms and users. The latest attack exploited Jimbos’ liquidity conversion mechanism, resulting in the theft of 4,090 ETH tokens.
Jimbos Protocol is a relatively new protocol that was launched less than 20 days ago. The protocol aims to address liquidity and volatile token prices through a new testing approach. However, it appears that the protocol’s mechanism was not adequately secured, resulting in the vulnerability that was exploited by the hacker.
According to PeckShield, the hacker was able to reverse swap orders for their own gain, resulting in the loss of funds.
The company tweeted its assessment following the unfortunate event:
“This hack is due to the lack of slippage control of liquidity-shifting operation – such that the protocol-owned liquidity is invested into a skewed/imbalanced price range, which is exploited in reverse swap for profit.”
The Jimbos Protocol team announced that they were “aware” of the attack and had contacted law enforcement and blockchain security professionals.
Earlier this month, an attacker compromised the Tornado Cash protocol and stole 483,000 TORN tokens. They then moved to swap these tokens into ETH. The attacker managed their exploit by seizing control of the Tornado Cash governance system.
TORN price fell 50% in reaction to the news.