Popular cryptocurrency project lost $ 13 million due to hacker attack

DeFi project Abracadabra Finance has once again fallen victim to a large-scale hack — this time, the attackers managed to steal 6,260 ETH, which is about $ 13 million. According to PeckShield analysts, the attack was aimed at the protocol’s credit markets, where GM tokens of the GMX decentralized exchange were used as collateral.

The developers of Abracadabra confirmed the incident and stated that the affected smart contracts had undergone a security audit by Guardian Audits. In addition, the system had built-in security mechanisms. Despite this, the attack was detected only after several transactions by the hacker. The protocol was promptly suspended, and the team is currently conducting an internal investigation and assessing the full extent of the damage.

The hackers were offered to return the stolen funds voluntarily in exchange for a reward of 20% of the amount. This approach has recently become widespread in the DeFi sector as an attempt to partially compensate for losses without litigation.

According to PeckShield analytics, the attackers withdrew funds from the Arbitrum network to three different Ethereum addresses. At the same time, GMX representatives assured that the exchange itself and its on-chain infrastructure remained intact, so the attack was not related to technical vulnerabilities on its side.

This is not the first such incident for Abracadabra Finance: in 2024, the protocol lost $ 6.5 million due to another attack. Repeated hacks call into question the level of security of even verified contracts and emphasize the need for constant security upgrades in the decentralized finance sector.