Magic Gone Wrong: Abracadabra Loses $13M in a Hocus Pocus Heist! 🪄💸

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What to know:

  • Abracadabra.Finance, a decentralized lending platform, was exploited for $13 million worth of cryptocurrency. 🤑
  • The attack targeted pools tied to GMX liquidity tokens within Abracadabra’s “cauldrons.” 🧙‍♂️
  • GMX’s contracts were unaffected by the exploit according to the exchange. Phew! 😅

So, here’s the scoop: Abracadabra.Finance got hit harder than a piñata at a kid’s birthday party, losing a whopping $13 million in cryptocurrency! 🎉💔

According to the blockchain security wizards at PeckShield, contracts involving the decentralized exchange GMX and Abracadabra were compromised, leading to the theft of 6,260 ETH. That’s about $12.98 million, or as I like to call it, “a small fortune!” 💰

The exploit focused on those magical “cauldrons,” which are like lending markets where users can borrow against crypto collateral. These cauldrons were relying on GM tokens, which are basically the magic beans of GMX, a decentralized exchange platform. 🌱✨

.@GMX_IO @MIM_Spell related contracts have been hacked for ~6,260 ETH (worth ~$13M)

— PeckShield Inc. (@peckshield) March 25, 2025

GMX quickly distanced itself from the incident, saying, “Hey, it’s not us, it’s you!” In a post on X, they assured everyone that their contracts were untouched. The team later clarified that the breach was “solely related to the Abracadabra/Spell cauldrons.” Talk about a messy breakup! 💔

Abracadabra confirmed the exploit and said their core contributors and engineers were investigating the incident. They claimed their cauldron was “fully audited,” which is like saying your magic wand is certified by the Wizarding Council. 🧙‍♀️🔍

In a twist worthy of a sitcom, the protocol even offered the attacker a 20% bug bounty! “Hey, if you’re gonna steal from us, at least let’s negotiate!” 🤷‍♂️💌

Abracadabra is now working with Guardian and GMX, along with other security partners, to assess the damage. They promised a full post-mortem once the investigation wraps up. And don’t worry, they said no user collateral was affected. So, keep your wands up! 🪄✨

Oh, and let’s not forget: last year, Abracadabra.Finance suffered a $6.49 million exploit that made its Magic Internet Money (MIM) stablecoin lose its peg to the U.S. dollar. It’s like a magic trick gone horribly wrong! 🎩💥

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2025-03-25 19:32