Jimbos Protocol hacked for over $7.5 million using flash loan exploit

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Jaroslaw Adamowski
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: AdobeStock / Tomasz Bidermann

Shortly after it fell victim to a hack, Arbitrum-based Jimbos Protocol has decided to seek the help of security researchers and on-chain analysts who collaborated on investigating similar attacks which targeted protocols such as Euler Finance and Sentiment.

“We are already working with multiple security researchers and on-chain analysts who helped with both the Euler Finance and Sentiment exploits,” Jimbos Protocol said in a tweet on May 28. “We will start working with law enforcement agencies tomorrow by 4PM UTC if this isn’t sorted out by then.”

Earlier that day, blockchain security company PeckShield rang the alarm bells after it discovered that an exploiter had bridged the stolen funds, valued at some ETH 4,048, or about $7.5 million at that time, to Ethereum.  

The available data indicates that the hacker used a loophole in the protocol’s code to carry out a flash loan.

In a subsequent tweet, the protocol said that its cooperation with security experts, bridges, and exchanges has enabled the team to identify “promising leads, and one in particular.”

“We hope the attacker will *voluntarily* cooperate – before they have no choice but to once we pass their info,” according to the protocol. 

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, as 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. 

“To the attacker: keep a fast $800k payday, and live to tell the tale. We won’t pursue you if you send back the 90%. But if you don’t, we won’t stop until you’re behind bars,” Jimbos Protocol said in a tweet in which it also invited the hacker to communicate with the protocol via a secure e-mail address. 

The Euler Finance hack saw the protocol fall victim to a flash loan attack in March 2023, causing 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 “$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.”

More Articles

DeFi News
From $10K to $75K: How Dave Portnoy Pumped and Dumped a Meme Coin on His Followers
Hassan Shittu
Hassan Shittu
2025-02-07 23:50:53
DeFi News
Donald Trump’s World Liberty Financial Set to Create Strategic Crypto Reserve: Report
Julia Smith
Julia Smith
2025-02-07 23:19:22
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors