$6.5M Crypto Drain Hits Abracadabra Money DeFi Platform

On 30th January, Abracadabra Money, a widely known DeFi lending platform suffered an attack,victimizing the attackers to snatch $6.5 million from their crypto asset. The vulnerability was an attempt to trick certain “cauldrons” on the Ethereum blockchain, transferring more than 2,740 Ethers from the platform’s table and sending them somewhere unknown.

We are aware of an exploit involving certain cauldrons on Ethereum.Our engineering team is triaging and investigating the situation.To the best of its Ability, the DAO treasury will be buying back MIM from the market to then burn.More updates are coming.

— 🧙🏼‍♂️ (@MIM_Spell) January 30, 2024

MIM loss events are being managed by Abracadabra’s DAO treasury that is trying to mitigate these losses by purchasing and burning its tokens. Still, the platform has not exposed itself about how much of such damage it will be dealing with.

This invasion is bad for the industry of DeFi, which has the statistics of its recent hacks. Even though the total losses of crypto in 2023 shrunk by 54%, as compared to last year, the number of cyber spear phishing attacks increased during the similar period. The North Korea- affiliated organized criminal Lazarus Group was one of the leading players contributing to thefts of $ 1 billion.

The Abracadabra incident did not withstand the drop in losses, which clearly indicates that DeFi is still vulnerable to attacks. Better security and the equivalent in decreased volume of assets in space was possibly part of the resultant low loss ratio recorded for 2023, but vigilance still goes.

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2024-01-31 04:36