How much was lost in the Jewels hack?

The Jewels hack resulted in $64K in losses on November 24, 2023.

What attack technique was used in the Jewels exploit?

The Jewels exploit utilized Rugpull. Understanding this attack vector is critical for smart contract auditors and developers building secure DeFi protocols.

How can developers prevent similar smart contract attacks?

Preventing smart contract hacks requires a combination of secure coding practices, thorough security audits, and understanding common attack vectors like reentrancy, oracle manipulation, and access control flaws. Smart Contract Hacking (SCH) provides hands-on training to help developers and auditors identify and prevent vulnerabilities before deployment.

Jewels Hack

TOTAL LOST $64K

Low Nov 24, 2023 Rugpull

Affected Chain 2023 Incident surface

Recovered - No recovery reported

All-Time Rank #1658 By amount stolen

Protocol Type Exit Scam/Rugpull Target category

Incident Overview

Quick Summary

JWL token was rugpulled by scammer, depleting liquidity pool worth 63,794 USD worth 31.14 WETH.

Details of the Exploit

JWL is an ERC20 token trading on UniSwap. On Nov 24, 2023, the scammer performed a rugpull by swapping a significantly larger number of tokens, completely depleting the liquidity pool worth 31.14 WETH (63,794 USD). The stolen funds were then transferred to another EOA and withdrawn to Binance through several different addresses.

After a couple of minutes, the deployer sent 2.13 ETH to the scammer's address after the token swap.

Block Data Reference

Deployer Address:

https://etherscan.io/address/0x537A494f…a90011

Scammer Address:

https://etherscan.io/address/0x3d6b0693…bD6522

Liquidity Removal Transaction:

https://etherscan.io/tx/0xfaf6c9d4…092e3b

Funds Holder Address as of Nov 27, 2023:

https://etherscan.io/address/0x1607644E…d4C29B

Binance Withdraw Transaction:

https://etherscan.io/tx/0xcc5ceda2…622db2

Incident Report

Protocol / Project Jewels

Date of Incident November 24, 2023

Attack Technique Rugpull

Classification Token

Primary Source View Post-Mortem

Protocol Information

Protocol Type Exit Scam/Rugpull

Affected Token JWL

Official Website jewelsproject.com/

Protocol Twitter/X @JewelsCoin

Team Anonymous

Source Code Verified On-Chain

Market Context at Time of Hack

Protocol Links

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.

Technical Knowledge Deep understanding of rugpull and Solidity and EVM internals

Capital Required Seed capital to cover gas and initial position setup

On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract

Protocol Analysis Identification of the exploitable vulnerability in Jewels's contract logic - root cause: token

Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block

Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Hard to catch — private key / OpSec failures are outside smart contract audit scope

If you're auditing a protocol with similar architecture to Jewels, these are the critical security checks that could have prevented this incident (November 2023).

Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
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.

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Sources & References

01
Source 1 https://twitter.com/PeckShieldAlert/status/1727874455219900427

Threat Assessment

Severity Level

LOW

Attack Vector Rugpull
Root Cause Token
Year 2023

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