In a startling turn of events, the popular Arbitrum liquidity protocol, Jimbos, was the victim of a suspected cyber attack, resulting in the loss of over 4,000 ETH, valued at over $7.5 million. The event has sent shockwaves across the crypto community, raising concerns about the safety of DeFi systems. PeckShield, a well-known blockchain security firm, initially announced the vulnerability in a post on their official Twitter account.
According to PeckShield’s assessment, the attack was caused by a weakness in the protocol’s slippage management mechanism for liquidity-shifting activities. This flaw let the attacker exploit an uneven value variation, successfully manipulating protocol-owned liquidity for revenue.
The Jimbos Protocol, built on the Arbitrum network, has acquired significant traction within the DeFi ecosystem because to its innovative approach to liquidity supply. It enables clients to pool their cash and receive incentives by providing liquidity to a variety of token pairs.
Nonetheless, the recent intrusion has revealed a critical flaw in the platform’s security system. JIMBO, the platform’s native token, fell by more than 40% in six hours, according to a graphic provided by the crypto group by the blockchain security agency.
Last week, Coin Version disclosed a similar blockchain vulnerability in which the popular obfuscation protocol, Twister Money, was the target, with 6,000 pieces of its governance token stolen and exchanged for the Ethereum (ETH) coin.
Twister Money, in particular, was subjected to a governance attack in which hostile actors took control of the protocol and assigned themselves 1.2 million votes via a risky proposal, causing its native token to collapse 35%.