Compromised Liquidity Protocol Jimbos Sets Deadline for Exploiters Prior to Involving Law Enforcement

The Arbitrum-based liquidity platform, Jimbos Protocol, announced its collaboration with various security researchers and on-chain analysts following an exploit that resulted in a loss of approximately $7.5 million over the weekend.

• In the most recent update, Jimbos indicated that the team would reach out to law enforcement agencies after 4 PM UTC on Monday if the perpetrator did not return the stolen assets.

“Quick update: We are already collaborating with several security researchers and on-chain analysts who assisted with both the Euler Finance and Sentiment exploits. We will begin working with law enforcement agencies tomorrow by 4 PM UTC if this situation is not resolved by then.”

• As previously mentioned, Jimbos experienced a hack on the morning of May 28, leading to the loss of over 4,000 ETH.
• Blockchain specialist PeckShield attributed the incident to the absence of slippage control in the main contract, which allowed the attackers to secure a $5.9 million flash loan, manipulate the prices of JIMBO, the protocol’s native token, and abscond with treasury funds.
• The protocol’s team sent a message embedded in a transaction to the exploiter’s wallet address, proposing to halt all investigations if 90% of the stolen assets were returned.
• Jimbo was launched less than a month ago, with its second version introduced just three days prior to the exploit.
• Additionally, Jimbo’s first version faced challenges shortly after its launch on May 16th. Consequently, the team advised users to refrain from any interactions with the token, labeling V1 contracts as “irreparably broken.”

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