Jimbos Protocol Takes Stand Against Hacker, Demands Stolen Funds or Legal Pursuit
Jimbos Protocol Takes Stand Against Hacker, Demands Stolen Funds or Legal Pursuit
DeFi App Proposes Ultimatum to Cyber Assailant Following $7.5 Million Security Breach
In an unexpected turn of events, the team behind the compromised decentralized finance (DeFi) app Jimbos Protocol has issued a proposition to the hacker responsible for the security breach: Retain a tenth of the purloined funds and relinquish the rest, or be prepared for a legal pursuit. The team has demonstrated unyielding determination to bring the cyber assailant to justice, a sentiment expressed in a post dated May 28 on the Ethereum network.
After failing to secure a response, the team sent a follow-up message that same night, reinforcing their demand and signaling their intent to involve legal authorities should the funds remain unreturned. Jimbos Protocol identifies as a “responsive high-density liquidity protocol.” It tries to maintain the value of its JIMBO token above a predetermined minimum by collecting Ether (ETH) in the protocol’s treasury to bolster the token’s price.
The protocol fell prey to a flash loan attack on May 28, with the intruder stealing $7.5 million from the treasury’s liquidity pool. Numen Cyber Labs, in their assessment of the attack, pointed to a loophole in the JimboController contract. It permitted anyone to activate the shift() function and inject liquidity into the pool. The hacker utilized this to tamper with the JIMBO token’s sell-off price during withdrawal, effectively depleting the pool of $7.5 million worth of ETH.
DeFi cyberattacks are not a rare occurrence in the blockchain and Web3 universe. However, there is often a silver lining for users as hackers sometimes concede to returning the bulk of the stolen funds after discussions with the development teams. Euler Finance, a notable case, lost approximately $200 million to a hacker on March 13, marking the largest attack of the year. However, the culprit returned almost all the funds. Sentiment, a liquidity protocol, also suffered a similar attack on April 4, but 85% of the stolen assets were returned two days later.
According to the Jimbos Protocol team, they work alongside the same security experts and analysts who worked on the aforementioned incidents.
<Copyright © TokenPost. All Rights Reserved. >
