Abracadabra Finance loses nearly $6.5 million to an exploit

Source Fxstreet
  • The Abracadabra team behind the MIM stablecoin protocol has issued an acknowledgement of an exploit in a tweet.
  • The protocol’s Ethereum cauldrons were hit by an exploit and the MIM, a stablecoin suffered a depeg in response to the event.
  • The exploit on the DeFi protocol is likely ongoing and blockchain security firm PeckShield has estimated losses of $6.49 million. 

Abracadabra Finance, a DeFi lending and borrowing protocol, acknowledged in a recent tweet that its Ethereum cauldrons have been hit by an exploit. Blockchain security firm PeckShield estimates that the exploit resulted in a loss of $6.49 million. 

PeckShield’s experts identified details pertaining to the exploit; the attacker funded it with 1 Ether from Tornado Cash and resulted in the biggest depeg in MIM stablecoin since the USD-pegged asset’s inception. 

Abracadabra Finance faces exploit, protocol drained for $6.49 million

The DeFi lending and borrowing protocol Abracadabra Finance has acknowledged that its Ethereum pools were drained. Blockchain security firm PeckShield estimates that the exploit is currently ongoing and has set the protocol back for $6.49 million in Ether. 

The blockchain security firm’s team has published further details of the exploit, how it was conducted and where attackers funded it from. The attack was initiated with 1 Ether in funds from Tornado Cash. 

Abracadabra

Exploit on Abracadabra Finance. Source: PeckShield 

The protocol’s stablecoin Magic Internet Money (MIM) suffered a depeg and dropped to a low of $0.76 before making its recovery to $0.94 on Tuesday, January 30. The depeg is likely the largest one since MIM’s inception. The team has yet to issue an official statement that outlines the nature of the exploit and the steps taken to mitigate the attack. 

In its response to the exploit, MIM_Spell handle on X (formerly Twitter) acknowledged the exploit involving certain cauldrons on Ethereum and assured traders that the engineering team is triaging and investigating the situation. The team stated that the DAO treasury will buy back MIM from the market and burn it to tackle the depeg and asked traders to wait for more updates. 

The security firm Cyvers shared its initial analysis of the exploit and stated that the exploiter has sent over 1,800 Ether worth nearly $4 million to a new wallet address that the team has identified. 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, 2024
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
XRP spot ETF approval odds surge to 92% for 2025The 2025 XRP Spot ETF approval odds increase to 92% amid a shift in market sentiment.
Author  Cryptopolitan
Jun 04, Wed
The 2025 XRP Spot ETF approval odds increase to 92% amid a shift in market sentiment.
placeholder
Solana (SOL) Breakout Watch: Price Could Rally Hard Above $150 Level?Solana started a fresh increase from the $125 zone. SOL price is now consolidating gains and aims for more gains above the $150 level.
Author  NewsBTC
Jun 25, Wed
Solana started a fresh increase from the $125 zone. SOL price is now consolidating gains and aims for more gains above the $150 level.
goTop
quote