DeFi lending protocol Abracadabra has misplaced roughly $13 million by way of an exploit that seems to be linked to sure collateral tokens.
Crypto safety audit agency Peckshield flagged the hack, which drained a complete of 6,260 ether (ETH) on the Ethereum layer-two community Arbitrum. The funds have since been bridged again to Ethereum, the place they’re being held in three addresses.
After being tagged within the preliminary alert, decentralized perps trade GMX took to X to make clear that its contracts had been unaffected by the assault. The crew factors as an alternative to “Abracadabra/Spell cauldrons” which “allow for borrowing against specific GM liquidity tokens.”
Whereas the investigation into the foundation reason behind the hack is ongoing, one in all Abracadabra’s core contributors suspects it could possibly be linked to modifications in GMX’s codebase.
Essential safety discover:
There seems to have been an exploit associated to Abracadabra/Spell’s cauldrons that utilise GM tokens, as famous by PeckShield and different safety specialists monitoring the blockchain.
To make clear, no points have been recognized with GMX contracts, and…
— GMX 🫐 (@GMX_IO) March 25, 2025
Right this moment’s loss is double that of the final time Abracadabra was hacked. In January of final yr, the platform misplaced $6.5 million, briefly knocking its Magic Web Cash stablecoin off its greenback peg.
Later, in June, one other lending platform, UwU Lend, which is linked to Abracadabra by way of Michael Patryn (aka. 0xSifu), was hacked, twice. The fallout ultimately led to a liquidation cascade on Curve Finance founder Michael Egorov’s extremely leveraged positions backed by his personal platform’s governance tokens.
