Incident Overview
Jaypeggerz project was exploited via a flash loan attack, resulting in the loss of 18384 $USD.
Jaypeggerz ($JAY) is an ERC-20 token trading on Uniswap. Jaypeggerz experienced a flash loan exploit. The attacker borrowed $ETH from Balancer using their smart contract and used it
to manipulate the price of $JAY tokens on Uniswap by buying them up at low prices and selling them back at inflated prices. The attacker then returned the borrowed funds after completing these transactions.
The exploiter appears to have gained 15.32 $ETH, which were sent to TornadoCash and Aztec Network for anonymity purposes.
Attacker address:
https://etherscan.io/address/0x0348d20b…ac213b
Malicious transaction:
https://etherscan.io/tx/0xd4fafa12…db61f6
Malicious contract:
https://etherscan.io/address/0xed42cb11…f37340
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Jaypeggerz, these are the critical security checks that could have prevented this incident (December 2022).
- Verify all logic paths related to Flash Loan Attack are guarded by proper access controls and input validation - see the Flash Loans Attacks attack class for patterns
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialRelated Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
Learn to Prevent the Next Jaypeggerz
The Jaypeggerz hack is one of many attacks that skilled auditors are trained to detect before deployment. Master real exploit patterns and defense techniques with hands-on Web3 security training.