Jimbos Protocol – a recently launched Arbitrum-based app – had just become the latest victim of a major DeFi exploit this past weekend, losing up to $7.5 million. But the project’s security team bristles with determination to recover their losses and is now seeking help from the Department of Homeland Security to make sure the malicious actor behind the exploit pays the price.
$800K Bounty and 10% Reward for Arrest and Recovery of Stolen Funds
$800K bounty and a 10% reward are offered by the team for the arrest and recovery of stolen funds. “We warned you. We’d prefer to give you the bounty so we can focus on our protocol. The Jimbos team threatened the attacker on Twitter, stating they would involve law enforcement if funds weren’t returned. “The door remains open for the hacker to return the funds until they are arrested, at which point the offer will be rescinded.”
Jimbos is in good company when it comes to trying to recoup its funds from malicious actors. Flash loan attacks are common in DeFi, leveraging their effectiveness to exploit decentralized finance systems. Loans without collateral have short repayment periods, eliminating the need for borrowers to provide collateral. Failure to repay triggers cancellation of the transaction, with funds automatically returned to the lender by the smart contract.
Jimbos Protocol Team Collaborates to Track Down Attacker and Prevent Further Damage
The Jimbos team collaborates with experts to track down the attacker and prevent further damage. This is far from the first time such an attack has taken place, with other notorious attacks occurring in March and April this year, such as the $195 million hack on Euler Finance and the $8.2 million on Sentiment liquidity protocol.
Despite a slight rebound, the value of Jimbos’s native token JIMBO remains significantly lower than before the attack. The team is confident in tracking down the actor and recovering the funds in due course. Ogle, a security expert, expects the attacker to return the remaining funds for the benefit of all.
Utilizing Smart Contracts, Multi-Signature Checking, and Code Auditing Protocols
The Jimbos team is focusing on protocol development and taking preventive measures to prevent future exploits. Creating immutable code is crucial to safeguard token-based protocols against malicious actors and enhance system security. This may include a combination of smart contracts, multi-signature checking, and code-auditing protocols.
The Jimbos Protocol security team is confident in its ability to identify and bring the attacker to justice. Seeking help from the Department of Homeland Security shows the team’s commitment to protecting their protocol and users. Despite being targeted in a DeFi exploit, the Jimbos team is committed to seeking justice and recovering their losses.
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