Abracadabra Money Exploit Claims $6.5 Million Crypto Assets – DailyCoin

Published on:

  • Lending protocol Abracadabra Money has been attacked.
  • Millions of dollars in stolen crypto assets are feared to be missing.
  • The protocol confirmed on X that it was “investigating” the incident.

DeFi crypto lending platform Abracadabra Money has reportedly suffered a colossal security breach, with crypto assets worth millions of dollars feared to have been stolen.

Created by Daniele Sestagalli, Abracadabra Money is an Ethereum-based non-custodial stablecoin protocol that allows users to deposit various cryptocurrencies as collateral to borrow Magic Internet Money (MIM).

Abracadabra Money Hit for $6.5 Million

On January 30, two blockchain security firms alerted the Abracadabra Money team to “multiple suspicious transactions” involving the protocol’s MIM stablecoin.

Cyvers first labeled the incident a security breach on X (Twitter), claiming the hacker initiated the attack with a 1 ETH deposit from Tornado Cash and “was able to gain around $6.5M.”

Reporting on the same incident, PeckShield also estimated the loss to be approximately $6.5M.

“The initial loss for @MIM_Spell is ~$6.5M, comprising 2.74K $ETH. The exploiter initially funded the attack with 1 $ETH from #TornadoCash,” PeckShield wrote on X.

Without confirming the amount lost to the attack, the Abracadabra Money took to X moments later and confirmed the exploit.

“We are aware of an exploit involving certain cauldrons on Ethereum. Our engineering team is triaging and investigating the situation. To the best of its Ability, the DAO treasury will be buying back MIM from the market to then burn,” the team wrote.

Per CoinMarketCap data, MIM stablecoin depegged and fell from $1 to $0.7672 following news of the attack. At press time, MIM was trading at $0.9246, while Abracadabra Money had not issued any further update.

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Source: cryptodaily.co.uk