Arbitrum liquidity protocol suffers massive hack as $7.5M vanishes overnight

The cryptocurrency industry witnessed another massive security attack, with Jimbos, an Arbitrum-based protocol, being the latest victim. The suspected hack breached the liquidity protocol, resulting in enormous losses of around 4,000 Ethereum (ETH), worth around $7.5M.

The jimbos protocol, the Arbitrum liquidity protocol, was suspected of being attacked and more than 4,000 ETH (approximately $7.5 million) was stolen.

PeckShield: This hack is due to the lack of slippage control of liquidity-shifting operation — such that the protocol-owned…

— Wu Blockchain (@WuBlockchain) May 28, 2023

Meanwhile, blockchain security company PeckShield highlighted the exploit, revealing crucial protocol weaknesses. The firm tweeted that the significant losses emerged from an absence of slippage control of liquidity-shifting. The attackers capitalized on this shortfall to reverse swap, turning Jimbos against its liquidity to reap profits.

The hiatus triggered a skewed price range that the attackers exploited to ensure substantial gains. The manipulative moves catalyzed miss-investments of the network’s liquidity into the imbalanced range– a weakness that made the attackers’ work smooth.

Meanwhile, the latest hack magnifies worries about Arbitrum protocol’s security policies. Moreover, it amplifies the increasing need for top-notch security measures as fraudsters become intellectual in the booming cryptocurrency industry.

Meantime, the crypto community awaits the Jimbos protocol to (officially) highlight the situation. The statement should address the hack, expound on the counteractive plans, and update the roadmap to enhance security and ensure user trust. Until then, market players may contemplate how the unprecedented incident can affect the crypto marketplace.

Crypto market today

The latest news from Invezz.com shows the cryptocurrency market rode bullish waves today. That came as the U.S. debt ceiling reached a tentative deal. The market remained green during this publication, with Bitcoin changing hands beyond $27K.

Nonetheless, news about scam activities is known to ruin market sentiment. Thus, the latest attack on Jimbos protocol might deteriorate bias within the crypto world.

Market players should wait for Jimbos’ official statement as they contemplate possible implications. Keeping up with the latest crypto news is essential to determine upcoming trends in the cryptocurrency space.