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THE LATEST

DATA BREACH AT MCNA DENTAL INSURER IMPACTS 9 MILLION USERS

 * Security
 * Cyber Attacks

byHabiba Rashid
May 29, 2023
2 minute read
No comments

JIMBOS PROTOCOL HACK: $7.5 MILLION LOST IN LATEST DEFI ATTACK

 * Hacking News
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byHabiba Rashid
May 29, 2023
2 minute read
No comments

STEALING FROM WALLETS TO BROWSERS: BANDIT STEALER HITS WINDOWS DEVICES

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May 27, 2023
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JIMBOS PROTOCOL HACK: $7.5 MILLION LOST IN LATEST DEFI ATTACK

The attack on Jimbos Protocol exploited a critical vulnerability related to the
lack of slippage control on liquidity conversions.
byHabiba Rashid
May 29, 2023
2 minute read
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The immediate consequence was that the price of the native token of the Jimbos
Protocol, Jimbo (JIMBO), plummeted by 40%.

In the ever-evolving world of decentralized finance (DeFi), security remains a
persistent challenge. The latest victim of a protocol hack is Jimbos Protocol, a
decentralized liquidity platform operating on the Arbitrum system. The attack
resulted in a loss of 4,000 Ether (ETH), valued at around $7.5 million during
the incident. 

The attack on Jimbos Protocol exploited a critical vulnerability related to the
lack of slippage control on liquidity conversions. While slippage typically
refers to price discrepancies during volatile market conditions, this particular
vulnerability allowed liquidity to be invested at inconsistent or distorted
prices. Attackers took advantage of this loophole by executing reverse swap
orders, manipulating the price range to their advantage.





The immediate consequence was that the price of the native token of the Jimbos
Protocol, Jimbo (JIMBO), plummeted by 40%. However, despite the hack, the
broader cryptocurrency markets remained resilient, indicating investors’
confidence in distinguishing protocol-specific vulnerabilities from wider market
instability.

The Jimbos Protocol hack joins a growing list of DeFi protocol breaches,
emphasizing the persistent need for enhanced security measures. This incident
further highlights the importance of integrating robust slippage-controlled
procedures into DeFi protocols to deter price manipulations and protect user
funds.



By observing the trend of increasing attacks against DeFi protocols, we can
recognize the need of conducting comprehensive security audits and testing
before launching new protocols. While Jimbos Protocol aimed to address liquidity
and volatile token prices through a novel testing approach, the inadequately
developed mechanism left the protocol vulnerable to logical exploits.

In response to the attack, Jimbos Protocol promptly acknowledged the incident
and announced a collaboration with law enforcement agencies and cybersecurity
professionals. Such collaborative efforts are vital to mitigating the impact of
security breaches and recovering stolen funds.






RELATED ARTICLES

 1. Hackers steal $3.8 million from Defi Protocol DODO
 2. Hacker steals $24M from DeFi protocol Harvest Finance
 3. If Bitcoiners Want Bitcoin To Make It Big, They Need DeFi
 4. We Need Smarter Smart Contracts To Prevent DeFi Hacks
 5. SnatchCrypto hits DeFi, Blockchain Platforms with backdoor



 * Cryptocurrency
 * Cyber Attack
 * DeFi
 * Ethereum
 * Jimbos Protocol
 * security
 * Vulnerability

Author
Habiba Rashid

I’m a student and cybersecurity writer. On a random Sunday, I am likely to be
figuring out life and reading Kafka.

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