September 21, 2023

Hackers withdrew $7.5 million from the Jimbo's Protocol project

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Hackers withdrew $7.5 million from the Jimbo's Protocol project

Analysts at PeckShield, specializing inon the security of cryptocurrency projects, reported a hack of decentralized finance service Jimbo’s Protocol. The hackers withdrew 4,090 ETH ($7.5 million).

Hacking is associated with a lack of control overprice slippage of tokens controlled by the protocol, PeckShield experts say. The vulnerability was discovered in the second version of the protocol, which was launched three days ago. To carry out the attack, the hacker used an instant loan of $5.9 million.

“We are already aware of our protocol being hacked, activelycooperating with law enforcement agencies and information security specialists. We will publish more details as soon as possible,” promised the developers of Jimbo’s Protocol.

The Jimbo's project is based on the Arbitrum solution.The developers tried to create a token with a "semi-stable" floor price, supported by a certain volume of third-party assets. To do this, they took elements of the Olympus DAO project, which performed well, but then the project token collapsed. Jimbo's developers have changed some aspects of the project to make the token more stable. For this, among other things, the project's own liquidity is used.

The Jimbo's Protocol project began work on May 16,however, it was soon stopped due to an error in smart contracts. The developers urged the community not to use the project and wait for the second version of the protocol to appear. But they were too quick to deploy smart contracts and didn't do enough validation. After the hack, the token rate collapsed from $0.24 to 0.

According to TRM Labs, the volumecryptocurrencies stolen in the first quarter of 2023 fell by 65% ​​compared to the same period in 2022. At the same time, the number of burglaries decreased slightly.