According to PeckShield, $7.5 million was stolen from the crypto project Jimbos Protocol.
Only three days following the release of version 2, the cryptocurrency project Jimbos Protocol was hacked for 4,090 ETH ($7.5 million).
According to crypto experts PeckShield, the breach was possible because the protocol lacked protections against slippage for the tokens it managed. The hacker used a $5.9 million flash loan (a short-term borrowing of tokens that is promptly returned) to launch the assault.
The Jimbos Protocol is an effort to create a token with a semi-stable floor price, backed by a number of assets, using the Arbitrum platform. It takes inspiration from the Olympus DAO project, whose value skyrocketed before crashing, and makes several adjustments to make it more stable. The basic concept is to leverage the project’s own liquidity with taxes and incentives to prop up the price.
The project started on May 16, but the protocol ceased functioning as intended not long after due to a flaw in the underlying smart contract. Users were urged to avoid using Version 1 until Version 2 was released. After today’s version 2 vulnerability, the token’s price on the decentralized market TraderJoe dropped from $0.24 to $0.
DCF God, a well-known cryptocurrency investor, said on May 25 that he had purchased jimbo coins before learning they did not have the functionality he had been expecting.