Jimbos Protocol Hacked Shortly After Version 2 .0 Release, Tokens Drained
The Jimbos cryptocurrency protocol suffered a hacking incident just three days after the introduction of its version 2 .0 . The attacker exploited a flaw in the system, using a flash loan attack to steal 4,090 ethers (ETH), equivalent to approximately $7 .5 million or R$37 million .
The Flash Loan Attack and Token Drain
Security company called PeckShield reported that the hacker took advantage of a vulnerability in the protocol system, executing a flash loan attack to drain the tokens . As a result the price of the project’s native token JIMBO, declined from $0 .24 to near zero, as observed on decentralized exchange TraderJoe .
Response from Jimbos Protocol
Jimbos addressed the incident on its Twitter account, saying that they were aware of the protocol exploitation and in contact with authorities and security professionals . They assured their users that more information would be shared soon .
The Jimbos Protocol and New Challenges
Built on the Arbitrum network, Jimbos intends to create a token with a semi-stable price by utilizing various assets as endorsement . However the project has encountered multiple problems in its short lifespan . Shortly after its initial launch, the system crashed due to a smart contract bug . The team advised users to refrain from using the protocol until the release of version 2.0, which took place just days before the attack .
The Jimbos cryptocurrency protocol suffered a significant blow with a hacking incident shortly after the release of its version 2.0 . Millions of dollars’ worth of ETH being stolen and the subsequent drop in token value stress the vulnerabilities that can exist within the crypto space . As investigations continue and further details come up, it serves as a reminder of the importance of security measures and audits within blockchain projects .