Jimbos Protocol Hacked for $7.5 Million
Jimbos Protocol Hacked for $7.5 Million
In the latest decentralized finance (DeFi) protocol hack, Jimbos Protocol, which is found on Arbitrum, has fallen victim to an attack resulting in a loss of $7.5 million worth of Ether. The attack exploited the absence of slippage control on liquidity conversions, allowing the attacker to manipulate swap orders in their favor. Launched less than 20 days ago, Jimbos Protocol aimed to address liquidity and volatile token prices but lacked robust, secure mechanisms for achieving that end goal, leading to the vulnerability. Consequently, the price of the underlying token, Jimbo (JIMBO), experienced a significant 40% drop.
The incident at Jimbos Protocol adds to the series of hacking incidents witnessed in the DeFi space. While the number of attacks has reportedly decreased compared to previous years, the community remains exposed to ongoing exploits. Despite efforts to enhance security measures, the DeFi ecosystem continues to grapple with the challenge of safeguarding against vulnerabilities and unauthorized access. Recent notable incidents include the flash loan attack on the 0VIX protocol, resulting in a loss of nearly $2 million, and the hijacking of Tornado Cash, which led to substantial financial losses from the extraction of Tornado Cash (TORN) tokens.
