Jimbos Protocol, which operates on Arbitrum, is working to figure out its next steps after experiencing a $7.5 million exploit in its V2. The project’s development team is currently searching for the most appropriate path forward.
Jimbos Protocol is collaborating with experienced security researchers who have assisted Euler Finance in recovering significant funds to recover the lost funds from the exploit. Jimbos will involve law enforcement by the specified deadline if the attacker does not return the funds.
Due to a lack of slippage control in the main contract, Jimbos Protocol experienced a loss of 4,090 ETH. This enabled unidentified attackers to exploit a $5.9 million flash loan, withdraw funds from the project’s treasury through price manipulation of JIMBO tokens.
Jimbos Protocol had planned to introduce a semi-stable token backed by various cryptocurrencies, which achieved popularity among traders due to the success of comparable initiatives.
Meanwhile, the JIMBO token experienced a minor recovery and was trading at roughly 18 cents on Monday. The development team, on the other hand, was deliberating on protective measures for the project.
The Jimbos Protocol incident demonstrates DeFi initiatives’ ongoing security challenges, underscoring the importance of rigorous risk management policies and continual enhancement of security procedures.
Compiled by Coinbold