Now Reading: Abracadabra Drained of $13M in Attack Targeting Cauldrons Tied to GMX Liquidity Tokens
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Abracadabra Drained of $13M in Attack Targeting Cauldrons Tied to GMX Liquidity Tokens
Abracadabra Drained of $13M in Attack Targeting Cauldrons Tied to GMX Liquidity Tokens
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Decentralized lending platform Abracadabra.Finance suffered an assault that drained $13 million value of cryptocurrency from swimming pools tied to GMX liquidity tokens.
Blockchain safety agency PeckShield flagged that contracts involving decentralized alternate GMX and Abracadabra had been compromised, main to the theft of 6,260 ETH, value round $12.98 million on the time of writing.
The exploit targeted on so-called “cauldrons,” remoted lending markets in Abracadabra the place customers can borrow in opposition to crypto collateral. These explicit cauldrons relied on GM tokens, which symbolize liquidity positions in GMX, a decentralized alternate platform.
GMX distanced itself from the incident. In a put up on X, an account related to the alternate stated that GMX’s contracts themselves had been unaffected. The crew later stated the breach was “solely related to the Abracadabra/Spell cauldrons,” which used GM tokens as collateral however didn’t contain GMX’s core infrastructure.
In a press release on X, Abracadabra confirmed the exploit and stated core contributors and engineers had been investigating the incident to its “fully audited” cauldron. The protocol famous that gmCauldrons had been audited by Guardian Audits — the identical agency that audited GMX contracts — and had been half of a broader safety infrastructure involving monitoring and response instruments.
The protocol provided the attacker a 20% bug bounty and invited them to negotiate through e mail or an on-chain message.
Abracadabra is working with Guardian and GMX in addition to different safety companions in assessing the extent of the harm and the way the assault was executed. A full autopsy will comply with as soon as the investigation concludes, and no consumer collateral was affected, it stated.
Last 12 months Abracadabra.Finance suffered a $6.49 million exploit that precipitated its Magic Internet Money (MIM) stablecoin to lose its peg to the U.S. greenback.
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