Abracadabra Finance Protocol Loses $13 Million in Hack Attack

Attackers have stolen 6,260 ETH (approximately $13 million) from the liquidity pools of the DeFi project Abracadabra Finance.

The hackers targeted lending markets, using GM tokens from the decentralized exchange GMX as collateral.

The developers have confirmed the incident and noted that the contracts had undergone a security audit by Guardian Audits and were equipped with multiple security measures.

Despite these precautions, the breach was detected only after the hacker executed «several transactions.» The protocol has since been paused, and the team is investigating the incident and assessing the damages.

The attackers have been offered a 20% reward for returning the stolen assets.

According to PeckShield, the funds were transferred from Arbitrum to three Ethereum addresses.

GMX stated that the attack did not affect the on-chain infrastructure of the exchange.

It’s worth mentioning that in 2024, Abracadabra Finance had previously lost $6.5 million due to a hack.