The team behind Jimbos Protocol, built on Arbitrum, is assessing the next steps following a $7.5 million exploit in its V2. They are actively working on finding the most suitable path forward for the project’s development.
Jimbos Protocol is collaborating with experienced security researchers, known for assisting Euler Finance in recovering substantial funds, to recover the lost funds from the exploit. If the attacker does not return the funds, Jimbos will engage law enforcement by the specified deadline.
Jimbos Protocol experienced a loss of 4,090 ETH due to a lack of slippage control in the main contract, enabling unidentified attackers to exploit a $5.9 million flash loan. Through price manipulation of JIMBO tokens, they were able to withdraw funds from the project’s treasury.
Jimbos Protocol had intended to introduce a semi-stable token backed by a diverse range of crypto tokens, attracting interest from traders due to the success of comparable projects.
In the meantime, the JIMBO token saw a modest recovery, trading at around 18 cents on Monday, while the developers discussed protective measures for the project.
The incident involving Jimbos Protocol highlights the ongoing security challenges faced by DeFi projects, emphasizing the need for robust risk management measures and continuous improvement in security practices.