Jimbos Protocol lost $75M in a recent hack and their token dropped 26%

The Arbitrum-based Jimbos Protocol may have become the latest victim of decentralized finance (DeFi) protocol hacks. This happened after hackers attacked the crypto project on the morning of May 28, stealing 4,090 ETH ($7.5 million).

The incident happened barely three days after Jimbos Protocol launched its version 2, as the attacker quickly exploited a vulnerability in the protocol. According to crypto analyst PeckShield, the protocol lacked slippage control for the tokens under it, creating an opportunity for an attacker to reverse swap orders for their gain. The exploiter used a $5.9 million flash loan to carry out the attack.

The protocol has also confirmed the incident on its Twitter page and claims to have begun investigating the issue. It will only divulge more information when possible. The statement read in part:

“We are aware of the exploit regarding our protocol and are actively in contact with law enforcement and security professionals.”

The protocol’s underlying token JIMBO has reacted to the news of the hack. According to CoinMarketCap data, the token, which was trading at 0.2464 before the incident, now trades at 0.1817. This represents more than a 26% loss.

Jimbos Protocol Hack Re-opens Concerns about DeFi

The recent exploit has reopened conversations about how the DeFi ecosystem is a constant target of various attacks. While flash loan attacks are almost synonymous with DeFi protocols, recent reports suggest a significant decline in the number of attacks compared to previous years. This reduction is likely linked to recent efforts to improve security measures. Nonetheless, Jimbos hack and many similar ones in recent times have shown that the DeFi ecosystem is still faced with these vulnerabilities.

Recall the recent flash loan attack that saw the 0VIX protocol lose about $2 million. Similarly, attackers notably infiltrated the privacy-focused Tornado Cash protocol and carted away substantial amounts of Tornado Cash (TORN) tokens.

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