Jimbos Protocol hacked for $75M via flash loan exploit

After being hacked, Jimbos Protocol, which is based on Arbitrum, has decided to collaborate with security researchers and on-chain analysts who have investigated similar attacks on other protocols such as Euler Finance and Sentiment. The protocol stated in a tweet on May 28 that they are already working with multiple security researchers and on-chain analysts who helped with both the Euler Finance and Sentiment exploits. If the issue is not resolved by 4PM UTC the next day, they will begin to cooperate with law enforcement agencies. Blockchain security company PeckShield had discovered that an exploiter had bridged the stolen funds, which were worth around $7.5 million at the time, to Ethereum.

The hacker used a loophole in the protocol’s code to carry out a flash loan, according to available data. The protocol said in a subsequent tweet that it is cooperating with security experts, bridges, and exchanges, and has identified “promising leads, and one in particular.” They hope the attacker will voluntarily cooperate before they have no choice but to pass their information to the authorities.

On May 29, the hacked protocol tweeted its offer to the suspected hacker, declaring that it was open to reaching a mutually satisfactory understanding with them. Jimbos Protocol’s team “don’t want anyone’s lives ruined, but given no choice, we will do what we say.” The offer comprises both a carrot and a stick. The hacker is invited to communicate with the protocol via a secure e-mail address.

The Euler Finance hack in March 2023 caused the loss of around $200 million worth of digital assets. However, in a surprising development, the exploiter has returned a major portion of the stolen funds to the hacked protocol.

Jimbo Protocol’s official site states that “$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.”