We all know that there are always hacks in the crypto world, today i will explain to you the hack of Jimbos protocol which is hosted on the Arbitrum network. Arbitrum is the most used layer 2 on the Ethereum network, It has over $5.8 billion in liquidity.
What is Jimbos and what happen
Jimbos is a decentralized finance protocol evolving on Arbitrum and launched less than a month ago. In practice, it aims to improve liquidity and reduce volatility through a concentrated liquidity mechanism.
Three days after the launch of its v2. It has been hack on May 28, the hacker stole 4000 ETH worth approximately 7,5 millions dollars. As a result, the underlying token, Jimbo (JIMBO), suffered a 40% price drop.
How did it happen
Regarding the methodology used by the hacker, he simply exploited a slippage control breach on the protocol by repeating swaps several times thanks to a flash loan of 5.9 million dollars.
A slippage refers to the difference between the expected price of a trade and the price at which the trade is executed.
What is the outcome
For now the hacker has not return the money but it has also not moved the funds. A situation that could allow for a potential return of funds. Indeed, usually hackers will try to scramble the tracks as quickly as possible, using protocols such as Tornado Cash.
Jimbos reactions was to inform the hackers that they will pursue him if he dosen’t return 90% of the stolen ETH. They have offer him 10% ( 800 000 dollars ) as the bug bounty rewards.
Conclusion :
The crypto space has ( again ) suffer a hack, we will see what are the hacker intention. Until then, take care
Thank you for reading !
