Abracadabra Faces $1.8 Million Loss in Latest Hack
The latest security breach resulted in a loss of $1.8 million from Abracadabra. The protocol faced its third major hack since 2024. Evidence indicates an exploit on MIM tokens, causing the project to pause related contracts.
Founder Daniele Sestagalli has not issued any official statements. Instead, the Discord platform served as the main communication channel. There, core contributors confirmed the deployment of DAO reserve funds to address the situation.
Market Reaction to 51 ETH Moved via Tornado Cash
The financial repercussions saw 1.79 million MIM tokens drained across lending pools. Further analysis revealed the attacker utilized multiple addresses, channeling 51 ETH via Tornado Cash while retaining 344 ETH in their wallet.
With contracts paused and DAO funds involved, the market response has seen increased caution. MIM experienced a 16.98% drop in trading volume while its price declined over past months due to such vulnerabilities. See further insights on Lessons from the Abracadabra Money Hack.
Recurring Security Flaws Cost Abracadabra $6.49 Million
Previous hacks in January 2024 and March 2025 affected protocol stability and led to temporary MIM depegs. The January 2024 attack alone accounted for a $6.49 million loss, highlighting persistent vulnerabilities within the platform.
According to Weilin William Li, MIM's exploitation results from a coding issue where an ‘else’ branch defaults status variables incorrectly. Community sentiment underscores the need for stronger risk controls and transparent communications.