- Jimbos liquidity protocol suffers cyber attack, losing $7.5 million worth of ETH.
- PeckShield reveals hack caused by weakness in slippage control mechanism.
- Recent breaches highlight need for robust security measures in DeFi and blockchain.
In a surprising twist, the widely-used Arbitrum liquidity protocol, Jimbos, has reportedly suffered a suspected cyber attack, leading to the unfortunate loss of more than 4,000 ETH, valued at around $7.5 million.
The recent breach has reverberated throughout the cryptocurrency community, prompting valid apprehensions regarding the safety of DeFi platforms. PeckShield, a reputable blockchain security firm, initially disclosed the incident via their official Twitter account, sparking widespread concern.
PeckShield’s analysis has revealed that the recent hack was caused by a weakness in the protocol’s slippage control mechanism for liquidity-shifting operations. This flaw enabled the attacker to exploit an uneven price range, skillfully manipulating the protocol’s liquidity to generate profits. The findings of this investigation highlight the importance of robust security measures in the ever-evolving landscape of digital finance.
The Jimbos Protocol, developed on the robust Arbitrum network, has garnered immense traction in the DeFi landscape owing to its ingenious liquidity provision methodology. It empowers users to consolidate their funds and reap lucrative rewards by offering liquidity to diverse token pairs.
The recent breach has brought to light a significant vulnerability in the security infrastructure of the platform. The platform’s native token, JIMBO, experienced a sharp decline of more than 40% in just six hours, as evidenced by a chart shared by a reputable blockchain security firm with the crypto community. This is a stark reminder of the importance of robust security measures in cryptocurrency.
Coin Edition recently reported on a blockchain exploit that targeted the widely-used obfuscation protocol, Tornado Cash. The attack resulted in the theft of 6,000 units of the protocol’s governance token, which were exchanged for Ethereum (ETH) coins. This incident serves as a reminder of the ongoing need for heightened security measures within the blockchain industry.
Tornado Cash recently encountered a governance breach, wherein nefarious entities seized command of the protocol and granted themselves 1.2 million votes via a detrimental proposal, resulting in a 35% decline in its native token.
