In the third hacker attack on cryptocurrency platforms of the week, the Jimbos Protocol project, which was launched just 3 days ago, found itself in a dire situation and lost about 4,090 ETH, which is equivalent to $7.5 million, about 37 million real.
According to experts from PeckShieldthe vulnerability exploited by hackers was related to the protocol’s lack of control over the tokens in its liquidity pool.
The attackers used a flash loan of $5.9 million, in which tokens are borrowed and immediately repaid, to carry out the attack.
Seems like today @jimbosprotocol hack leads to the loss of 4090 ETH (by ~$7.5 million).
This hack is due to the liquidity shifting operation’s lack of slip control – so that the liquidity owned by the protocol is invested in a skewed/unbalanced price range, which is exploited in… https://t.co/wnQAeksojz pic.twitter.com/TPlqNlvnZD
— Peck Shield Inc. (@peckshield) May 28, 2023
Jimbos protocol
The Jimbos protocol, based on the Arbitrum blockchain, aimed to create a token with a semi-stable minimum price backed by an amount of assets.
Inspired by the Olympus DAO project, which experienced a rapid price increase before collapsing, the Jimbos protocol sought to make changes to make it more sustainable.
The core idea was to use the project’s own liquidity, combined with fees and incentives, to support the price of the token.
However, shortly after the initial release on May 16, a bug in the smart contract caused the protocol to malfunction.
Users were advised not to interact with version 1 and wait for version 2. Unfortunately, even after the release of version 2, the protocol was the target of an attack that resulted in a drastic drop in the price of the token, from $0.24 to $0, according to decentralized exchange TraderJoe.
In a statement posted on Twitter, Jimbos Protocol said it was aware of the exploit and was in active contact with law enforcement and security professionals. They promised to release more information as soon as possible.
There is a notice on the project’s official website highlighting that the mechanisms implemented are experimental and that the contracts have not been audited. Users are warned that any amount invested in the protocol may be lost due to unforeseen circumstances.
We are aware of the exploit related to our protocol and are actively in touch with law enforcement and security professionals.
Where possible, we will release more information.
— Jimbos Protocol (v2, coming soon) (@jimbosprotocol) May 28, 2023
Well-known crypto investor DCF God is said to have bought some Jimbo tokens on May 25, before realizing that the desired resource was not available. In a recent statement, he expressed his frustration by saying, “Oh, and now I’m fat.”
The Jimbos protocol attack is a damning reminder of the inherent risks of decentralized finance and the importance of conducting extensive security audits prior to the launch of cryptocurrency projects.
The crypto community and developers are urged to learn from this incident and adopt stricter practices to prevent future exploits and significant loss to users.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.