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 change GMX took to X to make clear that its contracts have been unaffected by the assault. The staff factors as a substitute to “Abracadabra/Spell cauldrons” which “allow for borrowing against specific GM liquidity tokens.”
Whereas the investigation into the foundation explanation for the hack is ongoing, certainly one of Abracadabra’s core contributors suspects it could possibly be linked to modifications in GMX’s codebase.
Necessary 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 now’s loss is double that of the final time Abracadabra was hacked. In January of final 12 months, 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.
