The Jimbos Protocol project, which is based on the Arbitrum network, has been attacked by hackers and lost 4,090 ETH from its smart contracts (more than $7.5 million), analysts at PeckShield have reported.
The project team has confirmed the attack. The developers have reported they are "actively in contact" with law enforcement and security professionals.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
These have also posted a message on the Ethereum blockchain asking the hackers to return the stolen assets in exchange for a 10% bounty and waiver of prosecution.
PeckShield has highlighted that the exploit is related to a "slippage control of liquidity" regarding tokens controlled by the protocol. According to analysts, the subtracted funds have been withdrawn through the Stargate and Celer Network infrastructure.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange
Numen Cyber has reported that for the attack, the attackers initiated a flash loan of 10,000 ETH. These assets were used to manipulate the price of the JIMBO token, resulting in the draining of liquidity funds.