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News/Jimbos Protocol to Hacker: Return $7.5M or Face the Consequences

Jimbos Protocol to Hacker: Return $7.5M or Face the Consequences

May 30 2023

12 months ago3 minutes read

Jimbos Protocol to Hacker: Strike a Deal or Brace for Police Action

Written by Kasper

In a gripping twist to the world of decentralized finance (DeFi) on May 28, the team behind the Jimbos Protocol offered a daring proposition to the hacker responsible for a significant Jimbos protocol hack. The deal was straightforward: return 90% of the stolen $7.5 million and keep a tidy 10% profit, or risk the threat of impending legal action.

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The $7.5M Deal Unveiled

After falling prey to a high-stakes exploit in the DeFi landscape, where the hacker made off with $7.5 million from the protocol's treasury-owned liquidity pool, the Jimbos team took an unexpected course of action. Rather than resigning themselves to victimhood or rushing to accuse, they reached out to the unknown attacker through the Ethereum network and their official Twitter account. Their offer was brazen, yet strangely pragmatic.

In their proposition, the attacker was invited to keep 10% of the stolen funds (a lucrative $750,000), on the condition that the rest be returned. Failure to do so, the team warned, would lead to collaboration with law enforcement agencies and possible prosecution.


Hacker's Silent Response Fuels an Ultimatum

Following the exploiter's lack of response, the Jimbos team sent out another message on both the Ethereum network and their official Twitter handle. This time, it was an ultimatum: return 90% of the stolen funds by "tomorrow by 4 PM UTC," or brace for an imminent police investigation.

This audacious move by the team added a new, gripping chapter to the Jimbos protocol hack narrative, and demonstrated their unwavering commitment to protect their token holders' interests.

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The Aftermath of the Deadline

As the deadline expired on May 29, the hacker remained silent. However, the Jimbos team updated their followers via Twitter, hinting at promising leads towards identifying the attacker. The team expressed their reluctance to ruin lives but reiterated their commitment to involving the police if the attacker failed to comply with their terms.


The Jimbos Protocol: Not Your Everyday DeFi App

For those new to this saga, Jimbos Protocol is a reactive concentrated liquidity protocol. Its primary mission is to sustain its token, JIMBO, above a predetermined floor price by accumulating Ether in its treasury and defending the token's price. Sadly, this innovative protocol fell prey to a flash loan attack, leading to the infamous Jimbos protocol hack involving $7.5 million.


DeFi Exploits: A Recurring Headache with Some Silver Linings

While DeFi exploits are increasingly becoming a norm in the ever-evolving Web3 ecosystem, there have been instances of exploiters returning a major portion of the stolen funds post-negotiations with development teams. For example, Euler Finance was compromised for over $195 million in March 2023, marking the year's biggest attack. Yet, the attacker returned nearly all the funds. A similar narrative played out with the liquidity protocol Sentiment in April.

Whether the Jimbos Protocol hacker will tread the same path is uncertain. Nonetheless, the Jimbos team is collaborating with the same security researchers and on-chain analysts that were involved in resolving these previous incidents, and remains hopeful for a positive outcome.


FAQ about Jimbos Protocol Hack

What is the Jimbos Protocol?

Jimbos Protocol is a reactive concentrated liquidity protocol. It aims to maintain the price of its token, JIMBO, above a specific floor price.

What occurred during the Jimbos Protocol hack?

An unidentified hacker exploited a flaw in the JimboController contract on May 28, leading to a loss of $7.5 million worth of Ether from the protocol's treasury-owned liquidity pool.

What steps is the Jimbos Protocol team taking to address the situation?

The team has proposed a deal to the hacker: keep 10% of the funds if they return the remaining 90%. If the hacker fails to comply, the team has threatened to involve law enforcement.

Has there been any resolution?

So far, the hacker hasn't responded to the offer. The Jimbos team continues to investigate leads to identify the attacker and maintains their commitment to pursue legal action if necessary.

This article has been refined and enhanced by ChatGPT.

 

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