The team behind exploited DeFi app Jimbos Protocol has issued a deal to the app’s exploiter: retain 10% of the stolen funds in exchange for returning 90% of the funds, or face prosecution. In a May 28 tweet, the team vowed not to stop until the attacker is “behind bars” if they fail to comply. The hacker had previously drained $7.5 million from the app’s treasury-owned liquidity pool in a flash loan attack.
Jimbos Protocol, which aims to maintain the price of its token JIMBO above a set floor by accumulating Ether in its treasury, joins other DeFi platforms that have suffered significant losses due to such attacks. However, development teams often manage to negotiate with attackers and recover most of the stolen funds. As a result, the Jimbos Protocol team remains hopeful, stating they are working with the same “security researchers and on-chain analysts” who worked on other similar cases.
The practice of offering deals to hackers has its pros and cons. On one hand, it might be an effective strategy to recover lost funds and prevent further damage to users and the broader crypto community. On the other hand, it sets a potentially dangerous precedent that might encourage more hackers to seek similar deals. This, in turn, could lead to a surge in hacking attempts, which would inevitably damage trust and confidence in the blockchain and crypto industry.
The Jimbos Protocol instance is not an isolated case; DeFi platforms are frequently targeted by hackers, with several other high-profile attacks having occurred in recent months. For example, in March, Euler Finance suffered the largest attack in 2023, with over $195 million stolen, though the hacker eventually returned nearly all the funds. Sentiment, a liquidity protocol, experienced a similar incident in April, with 85% of the exploited funds being returned by the attacker.
While such incidents do cast a shadow over the otherwise promising future of blockchain technology and its applications, the industry needs to continue focusing on improving security measures and promoting awareness among users. This will ensure the long-term success and positive impact of blockchain technology on the financial sector and the world at large.
In conclusion, the Jimbos Protocol situation highlights the importance of robust security measures and opens a debate on the ethics of offering deals to hackers. As the blockchain industry grapples with these issues, it will ultimately be up to the community to find a balance between protecting users’ funds, maintaining trust in the technology, and minimizing risks associated with potential hacking incidents.
Source: Cointelegraph
