DeFi Project Abracadabra Undergoes $6.5 Million Attack

As per early reports, the Decentralized Finance (DeFi) project Abracadabra has fallen victim to an attack, leading to an approximately $6.5 million loss.

The bad actors continue to create havoc in the DeFi space with the latest Abracadabra attack.

How Abracadabra Lost Funds to Attackers

The on-chain investigation firm Cyvers revealed that the attackers’ wallet had initial deposits from the crypto mixer – Tornado Cash. So far, they have stolen $6.5 million and transferred around $4 million to new externally owned accounts (EOA).

Today, Abracadabra fell victim to a cyber exploit stemming from a rounding issue, marking a recurrent vulnerability for the platform,” Cyvers told BeInCrypto

Read more: Crypto Project Security: A Guide to Early Threat Detection

Following the news of the attack, the stablecoin of the Abracadabra ecosystem – Magic Internet Money (MIM) lost its $1 peg. As of writing, it is trading at $0.944. However, the project announced that the decentralized autonomous organization’s (DAO) treasury would buy back the stablecoin.

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,” said MIM

Read more: A Guide to the Best Stablecoins in 2024

The Abracadabra attack is not just a standalone event but a stark reminder of the inherent risks associated with the DeFi space. As these platforms gain popularity and handle increasing volumes of capital, they become enticing targets for cybercriminals.

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