Jimbos Protocol has taken decisive action to address a recent exploit and mitigate its impact by offering a bounty for information that would lead to the arrest of the hacker behind the exploit. The platform offered a 10% reward of the stolen funds as an incentive.
The exploit occurred on May 28, 2023, when a vulnerability in the Arbitrum-based DeFi application resulted in the loss of 4,000 Ether, valued at approximately $7.5 million at the time. The hacker took advantage of the absence of slippage control on liquidity conversions to carry out the attack.
To the attacker: keep a fast $800k payday, and live to tell the tale. We won’t pursue you if you send back the 90%. But if you don’t, we won’t stop until you’re behind bars. 🙈🙉🙊👻
You can open communications with us at Helloitsjimmy@proton.me
— Jimbos Protocol (v2, soon) (@jimbosprotocol) May 29, 2023
Initially, the team behind Jimbos Protocol attempted to negotiate with the hacker and made an initial payment of $800k as a gesture of goodwill. However, they made it clear that legal actions leading to potential imprisonment would follow if the remaining 90% of the funds were not returned.
3) In order to speed up the investigation and return of funds, we’re offering the 10% bounty (~$800K USD) to the general public.
Anyone who provides information that leads to: 1) catching the exploiter, or 2) all funds being returned, is eligible for the reward.
— Jimbos Protocol (v2, soon) (@jimbosprotocol) May 31, 2023
After allowing the hacker several days to respond to their offer without a satisfactory outcome, the Jimbos Protocol team decided to extend the bounty to the public.
In this bounty announcement, the team emphasized that individuals providing valuable information leading to the hacker’s identification or the recovery of the stolen funds would be rewarded.
Furthermore, Jimbos protocol has enlisted the help of the New York Department of Homeland Security, a specialized law enforcement organization known for its expertise in investigating blockchain cybercrime. They are working closely with these experts to address the situation effectively and ensure appropriate actions are taken to recover and apprehend the hacker.
The Jimbos Protocol team also expressed their commitment to formulating a recovery strategy for the victims affected by the exploit. They emphasized the importance of transparency and rebuilding trust within their community.
A similar situation occurred with the Euler Protocol in an earlier attack involving $196 million. The Euler Foundation issued a threat to the attacker on March 15, 2023, through an on-chain message, demanding the return of 90% of the stolen funds within 24 hours. They warned that failure to meet their demands would activate a $1 million bounty prize for information leading to the capture of the hacker.
Shortly after the announcement, PeckShield reported that the hacker attempted to obfuscate the funds by transferring $1.65 million (equivalent to 1,000 Ether) through the cryptocurrency mixer Tornado Cash. However, on March 18, 2023, Peckshield posted on-chain activities revealing that the attacker had started returning some of the stolen funds to Euler Finance. More funds were returned on March 25, 2023. Eventually, on April 4, 2023, Euler Finance announced that it had successfully recovered all the stolen funds.
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