Jimbos Protocol Offers Deadline to Hackers, Threatens Legal Action

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Key takeaways:

  • The creator of Jimbos Protocol made the following proposition to the app’s exploiter: either keep 10% of the money and refund the other 90% or face legal repercussions.
  • The deal was announced on the Ethereum network and on the official Twitter account for the system.

Jimbos Protocol’s developer has offered to the app’s exploiter: either keep 10% of the funds and refund the remaining 90% or face legal action. Without that, the group “won’t stop” until the assailant is “behind bars.” The Jimbos team tweeted about the potential deal on May 28 and posted it to the Ethereum network.

The team announced on May 28 on the Ethereum network that if 90% of the stolen assets are returned, the attacker won’t be prosecuted. After seemingly not receiving a reply, the team issued another message, giving the attacker until “tomorrow by 4 PM UTC” to refund 90% of the money and threatening to “start working with law enforcement agencies” if the money was not returned.

After the deadline had passed on May 29, the team tweeted that it had found some intriguing leads, including one that could help Jimbos identify the assailant. The team cautioned the attacker that while “we don’t want anyone’s lives ruined, but given no choice, we will do what we say,” it was implied that the protocol would carry out its promise to call the police if the attacker disobeyed.

According to Jimbos, it is a “reactive concentrated liquidity protocol.” By building up Ether in the protocol’s treasury and utilizing it to defend the token’s price, it aims to maintain the price of its token, JIMBO, above a predetermined floor price. 

The Jimbos Protocol team states that it is cooperating with the same “security researchers and on-chain analysts” who looked into the first two occurrences.

The protocol suffered a flash loan assault on May 28 when a hacker stole $7.5 million from its Treasury-owned liquidity pool. The vulnerability, according to research from blockchain security company Packshield, was made possible since the protocol couldn’t handle slippage for the coins it managed. A stunning loss of 4,090 ETH, or about $7.5 million, was caused by this vulnerability. 

On March 13, Euler Finance was compromised for approximately $200 million via a flash loan attack. The attacker, however, attempted to shield himself from legal consequences in April after on-chain investigators apparently discovered his real name by returning nearly all of the cash that had been taken.

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