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- 1 Hackers bypassed Jimbos Protocol and swiped millions in ETH.
- 2 TRM Labs reported that crypto hacks decreased by over 65% in Q1 2023.
Arbitrum-based protocol Jimbos mirrors a security breach draining 4000 Ethereum worth more than $7.5 million (at press time). PeckShield, a blockchain security and monitoring firm, reported the exploit.
It appears today's @jimbosprotocol hack leads to the 4090 ETH loss (w/ ~$7.5M).
— PeckShield Inc. (@peckshield) May 28, 2023
This hack is due to the lack of slippage control of liquidity-shifting operation — such that the protocol-owned liquidity is invested into a skewed/imbalanced price range, which is exploited in… https://t.co/wnQAeksojz pic.twitter.com/TPlqNlvnZD
Over the last few months, the number of hacks and attacks has increased in the crypto industry. Hackers bypassed the security infrastructure of Jimbo’s liquidity pool and successfully wiped out ETH worth $7.5 million.
According to PeakShield, the lack of slippage control of liquidity shifting is the primary reason for the hack. The hackers used a $5.9 million flash loan to carry out the attack.
In its official tweet, Jimbo’s Protocol wrote, “The community is aware of the attack on its protocol and is in close contact with security professionals and law enforcement departments.”
Jimbo’s protocol has faced a technical glitch before; soon after its launch, a bug in its smart contract interrupted the path, and the community requested its users not to interact with Version 1 and wait till the launch of Version 2.
The Arbitrum community informed that a total of 3352 Eth would be gathered by its DAO. DAOs are collectively owned and handled by their members. Arbitrum is a viral scaling network many decentralized applications and blockchain developers use.
To increase Ethereum’s scalability, a roll-up chain anointed Arbitrum (ARB) was developed. This is achieved by merging numerous transactions into one transaction, decreasing the burden on the Ethereum network.
Major Crypto Hacks in 2023
Per the data of TRM Labs, the number of crypto hacks in Q1 2023 decreased compared to any other quarter of 2022. A sharp decline of 65% has been seen in the crypto hacks since January 2023.
Earlier on May 7, 2023, TheCoinRepublic reported that the DEUS Finance protocol was hacked after hackers bypassed the platform’s security. After this hack, DEUS lost around $6 million.
The protocols confirmed the attack and paused all the contracts to prevent further damage. The DEUS team informed the same through Twitter, adding that they will soon start a recovery and redemption plan after a complete analysis of balance and snapshots.
Cretik, a crypto security and auditing firm, reported that the total amount wiped out in April 2023 was $103.7 million.
MEV Bots suffered an exploit worth $25,389,731 on April 3, 2023. Bitrue’s hot wallets were exploited for $22 Million, and the South Korean GDAC exchange lost $13 Million; the losses of Terraport were $4 Million, and SushiSwap lost $3.3 Million.
The Twitter account of the Kucoin cryptocurrency exchange was hacked by exploiters, resulting in losses of 22,628 USDT. There were 22 transactions identified to be initiated.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
