- 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.
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.
We are aware of an exploit involving certain cauldrons on Ethereum.
— ♂️ (@MIM_Spell) January 30, 2024
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.
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.
ALERTOur AI powered system has detected multiple suspicious transactions with @MIM_Spell (Ongoing)
— Cyvers Alerts (@CyversAlerts) January 30, 2024
Based on our first investigation, attacker was able to gain around $6.5M.
Attacker was funded by @TornadoCash. Around $4M already transferred to a new EOA at… pic.twitter.com/41tJtKh97Q
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.