Abracadabra, a cross-chain decentralized finance lending and borrowing protocol, has become the latest victim of hackers. The project has just lost nearly $6.5 million in a security exploit. While the project’s team has acknowledged the attack, more funds from the protocol remain vulnerable to theft at press time.
Abracadabra Part Ways With $6.49M
Blockchain security platform PeckShield initially detected the security breach and notified the Abracadabra team. Onchain data reveals that the attacker funded the exploit with 1 ETH, worth over $2,300, from the privacy protocol Tornado Cash.
After a series of transactions and token swaps, the attacker pulled out crypto assets worth $6.49 million from the Abracadabra protocol. PeckShield and other security platforms like BlockSec labeled the attack as a malicious exploit. However, no specific cause of the attack has been identified.
BlockSec disclosed that approximately $29 million remains in the affected smart contract. This signifies that more asset loss may ensue if the project does not take proactive measures to curb the losses.
Although the Abracadabra team has yet to take such a step, they announced an hour after the attack that they were aware of the exploit and are seeking ways to downsize the impact of the security breach.
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.
More updates are coming.
— ????????♂️ (@MIM_Spell) January 30, 2024
MIM Stablecoin Takes the Hit
Abracadabra has two native cryptocurrencies – SPELL (utility and governance token) and MIM (stablecoin). Amid the attack, MIM’s value dropped below its intended $1 peg to a trading price of $0.842, representing an all-time low. However, the stablecoin has risen to $0.96.
Source: CoinStats
On the other hand, the SPELL token did not record any significant price volatility. At press time, the utility token traded at $0.0005097, representing a 1.29% decrease in the past 24 hours.
Meanwhile, Abracadabra’s latest attack joins a slew of crypto exploits. One of the recent security breaches was the $82 million hack of the bridge for the cross-chain protocol, Orbit Chain.
