DeFi Protocol Abracadabra Money Loses $1.7M in Hack Attack

Yeliz Akmaca — Sun, 05 Oct 2025 09:00:59 +0000

DeFi protocol Abracadabra Money lost approximately $1.7 million in a recent hack. The attacker transferred the stolen funds to Tornado Cash to hide the trail. The team has not released an official statement yet, but blockchain researchers have confirmed the attack. This event highlights the ongoing security risks in DeFi platforms.

Hack Details and Impact

Abracadabra Money has now been attacked for the third time in the past two years. In 2024 and 2025, it lost $6.49 million and $13 million, respectively. According to blockchain researchers @officer_cia and Weilin William Li, the attacker exploited a vulnerability in Abracadabra’s smart contracts. Around $1.7 million in MIM tokens was withdrawn and swapped for ~395 ETH.

All affected smart contracts have been paused.
The attacker bypassed payment controls to quickly transfer the funds.
Abracadabra team has not yet released an official statement.

Market Reaction and Precautions

Abracadabra Money previously lost $13 million in a March 2025 hack. The recent attack has increased community calls for stress tests and comprehensive smart contract audits.

According to CoinMarketCap, Magic Internet Money (MIM) saw a 16.98% drop in trading volume. The 60-day price decline reached 40.26%, while the 90-day increase recorded 19.83%. This underscores the sensitivity of investor confidence.

The incident reignites discussions on security measures in the DeFi sector. Experts emphasize that proactive security testing and rigorous smart contract audits are critical.

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The post DeFi Protocol Abracadabra Money Loses $1.7M in Hack Attack appeared first on Coin Engineer.

Crypto Fraud Losses Drop in March

Yigit Taha OZTURK — Tue, 01 Apr 2025 11:00:50 +0000

Losses from crypto scams, exploits, and hacks fell to $28.8 million in March, a significant drop from February’s $1.5 billion loss following the Bybit hack.

According to blockchain security firm CertiK, the most significant loss was the $13 million smart contract exploit of the Abracadabra.money decentralized lending protocol on March 25.

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Major Code Vulnerabilities and Wallet Breaches

Code vulnerabilities accounted for over $14 million in losses.
Wallet compromises resulted in over $8 million being stolen.
The Zoth protocol suffered a $8.4 million loss after its deployer wallet was compromised.

Some Funds Were Recovered!

While over $33 million was stolen in total, decentralized exchange aggregator 1inch successfully recovered most of the $5 million stolen in a March 5 exploit after negotiating a bug bounty agreement with the attacker.

However, blockchain investigator ZachXBT claimed that an unidentified Coinbase user lost 400 Bitcoin ($34 million).

Additionally, the Australian Federal Police warned 130 people on March 21 about a crypto scam impersonating exchange sender IDs.