Abracadabra.Money Loses $13M in ETH to Security Breach, Following $6.49M January Hack

Decentralized lending protocol Abracadabra.Money has suffered another devastating security breach, resulting in the loss of approximately $13 million worth of Ether (ETH).

The exploit, which was detected on March 25 by blockchain security firm PeckShield, specifically targeted pools utilizing GMX tokens.

This marks the second significant attack on the platform this year, following a $6.49 million breach in January that led to the depegging of its Magic Internet Money (MIM) stablecoin.

The recent incident saw malicious actors draining 6,260 ETH by exploiting vulnerabilities in Abracadabra's smart contract infrastructure.

While the attack spread FUD (Fear, Uncertainty, & Doubt), the decentralized exchange was quick to distance itself, emphasizing that its contracts were unaffected and that the exploit was isolated to Abracadabra's cauldrons.

As investigations continue, the stolen funds have been traced moving through Tornado Cash before being bridged from Arbitrum to Ethereum.

GMX Denies Contract Vulnerability as Investigation Unfolds

As news of the attack broke, speculation arose regarding GMX's involvement since the affected cauldrons relied on GM tokens.

However, in an official statement, GMX asserted that its contracts remained secure, with a pseudonymous representative reiterating, "GMX contracts are not affected."