Abracadabra Money Exploit Claims $6.5 Million Crypto Assets

• Lending protocol Abracadabra Money has been attacked.
• Millions of dollars in stolen crypto assets are feared to be missing.
• The protocol confirmed on X that it was “investigating” the incident.

DeFi crypto lending platform Abracadabra Money has reportedly suffered a colossal security breach, with crypto assets worth millions of dollars feared to have been stolen.

Created by Daniele Sestagalli, Abracadabra Money is an Ethereum-based non-custodial stablecoin protocol that allows users to deposit various cryptocurrencies as collateral to borrow Magic Internet Money (MIM).

Abracadabra Money Hit for $6.5 Million

On January 30, two blockchain security firms alerted the Abracadabra Money team to “multiple suspicious transactions” involving the protocol’s MIM stablecoin.

Cyvers first labeled the incident a security breach on X (Twitter), claiming the hacker initiated the attack with a 1 ETH deposit from Tornado Cash and “was able to gain around $6.5M.”

Reporting on the same incident, PeckShield also estimated the loss to be approximately $6.5M.

Without confirming the amount lost to the attack, the Abracadabra Money took to X moments later and confirmed the exploit.

Per CoinMarketCap data , MIM stablecoin depegged and fell from $1 to $0.7672 following news of the attack. At press time, MIM was trading at $0.9246, while Abracadabra Money had not issued any further update.

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