Cyvers Reports Major Security Breach on DeFi Platform Abracadabra
Blockchain security firm Cyvers has recently reported a significant security breach that had a major impact on the DeFi platform Abracadabra’s MIM_Spell platform.
Loss of Funds
- The attack resulted in the loss of 6,262 ETH, which is approximately $12.9 million.
Stolen Funds Distribution
According to Cyvers, the attacker swiftly transferred the stolen ETH to the Ethereum network and spread the funds among three newly created wallets.
MIM Acknowledges Breach
On March 25, MIM confirmed the exploit in a statement, although they did not disclose the exact amount that was stolen.
Exploited Smart Contracts
- The exploit targeted the platform’s gmCauldron smart contracts, which had previously passed audits conducted by Guardian Audits.
- The platform also emphasized additional security layers, including integrations with Hexagate and ZeroShadow’s threat-tracking system.
Detection of the Breach
Despite the security measures in place, the exploit went undetected until multiple transactions had already taken place. ZeroShadow eventually identified the irregular activity, prompting Abracadabra to suspend all borrowing functions linked to the affected contracts.
Assessment of Impact
While MIM assured users that no collateral was compromised, internal teams are still evaluating the full extent of the breach.
“To the hacker, we are happy to entertain negotiations for a bug bounty of 20% of the total. Reach out at [email protected] or on chain to our treasury address on ETH 0xDF2C270f610Dc35d8fFDA5B453E74db5471E126B.”
Isolated Incident
- Initial indications suggested that the incident might have affected GMX’s platform, but the DEX clarified that its smart contracts remained unaffected.
- The exploit was isolated to Abracadabra’s cauldrons, specifically supporting borrowing against GM liquidity tokens.
Token Impact
Despite GMX’s separation from the incident, the platform’s native token experienced a decline in value.
CryptoSlate data shows GMX initially dropped nearly 5% in value before slightly recovering.
