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Jimbos Protocol Ultimatum: Return Hacked $7.5M or Face Law Enforcement

source-logo  beincrypto.com 29 May 2023 20:15, UTC

Jimbos Protocol has become the latest victim of a DeFi hack. The liquidity protocol of Arbitrum has lost $7.5 million.

Decentralized finance (DeFi) has been a frequent target of hacks, draining millions in users’ funds. Although the products have the virtue of decentralization, they are frequently exploited by bad actors.

Jimbos Protocol Threatens Action

Jimbospprotocol issued an ultimatum to the hackers, telling them to fix the issue by 16:00UTC on Monday. The protocol warned hackers of actions from law enforcement agencies if they did not return the funds by the deadline.

Jimbos Protocol wrote on Twitter:

“We are already working with multiple security researchers and on-chain analysts who helped with both the Euler Finance and Sentiment exploits.

We will start working with law enforcement agencies by 4 PM UTC if this isn’t sorted out by then.”

$7.5M DeFi Hack

Jimbos Protocol lost 4,090 Ethereum (ETH) worth around $7.5 million on Sunday to a DeFi hack. The project was launched less than 20 days ago.

The blockchain security firm PeckShield explained that the hack resulted from a lack of slippage control of liquidity-shifting operations.

The team acknowledged the exploit and sent an on-chain note to the hacker, asking them to return 90% of the funds.

Source: Etherscan

The Kitchen is About to Get Hot

Furthermore, the on-chain analyst @cryptogle retweeted, warning the hackers, “Kitchen is about to get hot for the hacker if they don’t send most of the funds back ASAP.”

The on-chain analyst hired by Jimbos Protocol is one of the experts who played a crucial role in aiding Euler Finance’s recovery of nearly the entire $200 million stolen during the hack.

In March, Euler Finance suffered a flash loan attack that drained nearly $200 million worth of ETH and DAI tokens.