Jimbos Protocol starts a race against time to recover the stolen funds.
In the aftermath of a substantial security breach, the team behind the decentralized finance (DeFi) application, Jimbos Protocol, has offered a unique proposition to the individual who exploited the app.
The offer, revealed in a tweet on May 28th, suggests a deal where the perpetrator could retain 10% of the stolen funds, returning the remaining 90% to avoid legal action. However, if the malicious actor won't agree with the proposal, the team stated that they "won't stop" until the attacker is "behind bars."
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In an attempt to initiate a dialogue with the exploiter, the Jimbos team issued a statement on the Ethereum network on May 28th at 7:25 AM UTC, asking the hacker to return funds. The message to the exploiter read:
Hi, we are aware that you have identified & executed an exploit on our protocol <about> 6 hours ago. If you return 90% of the funds to <wallet address>, we will stop all investigations immediately.
It is believed that the hacker did not respond to the initial message. The team reiterated their proposition in a message at 7:07 PM the same day, warning the attacker that they had until "tomorrow by 4 PM UTC" to return the majority of the funds.
Failure to do so would prompt the team to "start working with law enforcement agencies." This request was also relayed via the protocol's official Twitter account.
After the stipulated deadline had passed on May 29th, the team took to Twitter to announce that they had "identified promising leads, and one in particular" that may allow them to identify the perpetrator.
A stern warning accompanied the announcement: "we don’t want anyone’s lives ruined, but given no choice, we will do what we say."
The protocol fell victim to a flash loan attack on May 28th, which saw an exploiter siphoning off $7.5 million from its treasury-owned liquidity pool.
The aggressive stance taken by the Jimbos Protocol team against the attacker underscores the severity of security breaches in the world of DeFi. It remains to be seen whether this unconventional approach of offering a settlement to the attacker will bear fruit, as the threat of legal action looms large.