The Arbitrum network-based Jimbos Protocol project was attacked, as a result of which unknown persons withdrew 4090 ETH from smart contracts (over $7.5 million at the exchange rate at the time of writing). This was reported by PeckShield analysts.
It appears today’s @jimbosprotocol hack leads to the 4090 ETH loss (w/ ~$7.5M).
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… https://t.co/wnQAeksojz pic.twitter.com/TPlqNlvnZD
— Peck Shield Inc. (@peckshield) May 28, 2023
The project team confirmed exploit. The developers said they are “actively in contact” with law enforcement and security professionals.
They also published a message on the Ethereum blockchain offering the hackers to return the stolen assets for a 10% reward and waiver of prosecution. At the time of writing, no funds have been received at the address indicated by the team.
PeckShield noted that the exploit is related to a “slip control flaw” in relation to tokens that are controlled by the protocol. According to analysts, the stolen funds were withdrawn through the Stargate and Celer Network infrastructure.
Here comes the flow of stolen funds. @jimbosprotocol pic.twitter.com/HkUtTFZILv
— PeckShieldAlert (@PeckShieldAlert) May 28, 2023
Numen Cyber said that for the attack, the attackers initiated an instant loan for 10,000 ETH. These assets were used to manipulate the price of the JIMBO token, with the subsequent emptying of liquidity pools.
👉 The attacker initiated a flash loan of 10,000 $ETH as initial capital
👉 Then the $ETH was swapped for a significant amt of $Jimbo in the [ETH-Jimbo] causing a surge in the price of $Jimbo pic.twitter.com/7BauCRLqA0
— Numen Cyber (@numencyber) May 28, 2023
Jimbos Protocol originally launched on May 16th. Shortly after the start of work, the team abandoned the first version of the protocol due to a critical bug in smart contracts and introduced the second iteration of the application.
According to DEX Screener, the price of the JIMBO token collapsed by 25% amid the news of the hacking attack. At the time of writing, the asset is trading near $0.18.
Recall that in May 2023, unknown people withdrew assets worth $6 million from the Deus Finance DeFi protocol.
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