DeFi lending protocol Abracadabra has misplaced roughly $13 million through 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.
Learn extra: Magic Web Cash loses its sparkle as DeFi platform hacked for $6.5M
After being tagged within the preliminary alert, decentralized perps change GMX took to X to make clear that its contracts had been unaffected by the assault. The group factors as a substitute to “Abracadabra/Spell cauldrons” which “allow for borrowing against specific GM liquidity tokens.”
Whereas the investigation into the basis explanation for the hack is ongoing, one among Abracadabra’s core contributors suspects it may very well be linked to adjustments in GMX’s codebase.
Learn extra: Sifu’s UwU Lend reportedly hacked for $20M, Curve’s Egorov amongst affected
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 through Michael Patryn (aka. 0xSifu), was hacked, twice. The fallout finally led to a liquidation cascade on Curve Finance founder Michael Egorov’s extremely leveraged positions backed by his personal platform’s governance tokens.
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