As reported by Cointelegraph, with the increasing number of decentralised finance (DeFi), Jimbos Protocol, a liquidity of the Arbitrum system, is the current example of facing a hack along with a loss of funds.
With insights from PeckShield, a blockchain security platform, on May 28, 2023, the attack on Jimbos Protocol occurred and incurred a loss of about 4,000 Ether (ETH $1,905), valued at $7.5 million at the time of writing, stated Cointelegraph.
Sources revealed that the attacker took advantage of the lack of security in liquidity exchange systems. It is expected that the protocol’s liquidity is invested in a price range that can make a loophole for attackers enabling them to reverse swap orders for profit, Cointelegraph added.
Furthermore, as per PeckShield, the attackers extracted 4,090 ETH from the Arbitrum network. Supposedly, they used the Stargate bridge and the Celer Network to send about 4,048 ETH from the Ethereum network, Cointelegraph concluded.
(With insights from Cointelegraph)
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