Arbitrum Liquidity Protocol Jimbos Hacked, 4k ETH Worth $7.5M Stolen
CoinEdition
Published May 28, 2023 04:49AM ET
Updated May 28, 2023 05:00AM ET
Arbitrum Liquidity Protocol Jimbos Hacked, 4k ETH Worth $7.5M Stolen
- Jimbos suffers a cyber attack, losing $7.5 million worth of ETH.
- Jimbos’ native token plummeted by over 40% within six hours following the breach.
- The hack resulted from a flaw in the protocol’s slippage control mechanism.
In a shocking turn of events, the popular Arbitrum liquidity protocol, Jimbos, fell victim to a suspected cyber attack that resulted in the loss of over 4,000 ETH, estimated at approximately $7.5 million.
The incident has sent shockwaves through the crypto community, raising concerns about the security of DeFi platforms. The breach was first reported by PeckShield, a renowned blockchain security firm, through a tweet on their official Twitter account.
According to PeckShield’s analysis, the hack resulted from a flaw in the protocol’s slippage control mechanism for liquidity-shifting operations. This vulnerability allowed the attacker to exploit an imbalanced price range, effectively manipulating the protocol-owned liquidity for profit.
Last week, Coin Edition reported a similar blockchain exploit where the popular obfuscation protocol, Tornado Cash, was the target, with 6,000 units of its governance token stolen and swapped for the Ethereum (ETH) coin.
Specifically, Tornado Cash experienced a governance attack, where malicious actors gained control of the protocol and allocated themselves 1.2 million votes through a harmful proposal, causing its native token to fall 35%.
The post Arbitrum Liquidity Protocol Jimbos Hacked, 4k ETH Worth $7.5M Stolen appeared first on Coin Edition.
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