The crypto lending platform Abracadabra.Finance has been hacked, resulting in the theft of $13 million in Ethereum.
Details of the Abracadabra.Finance Hack
Security experts Cyvers and PeckShield confirmed that the hacker moved 6,262 ETH to the Ethereum network, spreading the money across three different wallets. The hacker targeted 'cauldrons', which are lending pools where users borrow against crypto assets.
Platform's Response and Collaborations
After ZeroShadow flagged the issue, Abracadabra shut down borrowing on all affected contracts. The company is working with security firms, including Guardian Audits and GMX, to determine the breach's cause. Abracadabra offered the hacker a deal to return the funds, keeping 20% as a bounty.
Consequences and Investigation
Blockchain investigators from Chainalysis have been tracking the stolen ETH, finding that the hacker bridged the funds from Arbitrum to Ethereum. No collateral was lost, lending and borrowing remained untouched, but Abracadabra is assessing the attack's full impact. A detailed post-mortem report will be released once investigations are complete. It is notable that Abracadabra experienced a similar security breach in 2024, leading to the loss of $6.49 million.
Abracadabra.Finance is working towards identifying all aspects of the incident to ensure future user security. The incident highlights the need for enhanced cyber protection in the decentralized finance world.
