Abracadabra Money Hack: $1.77M Lost in Latest Attack
Background on the Abracadabra Money Hack
Abracadabra Money, known for its lending and stablecoin services in the cryptocurrency sector, has experienced another significant breach. Cryptocurrency security firm GoPlus Security reported that the platform was targeted by an attack resulting in losses estimated at $1.77 million. The main focus of this breach involved the Abracadabra Money hack, with funds quickly transferred away from the platform.
According to GoPlus Security, the attacker managed to move 51 ETH to the privacy protocol Tornado Cash soon after executing the exploit. The attacker’s wallet, identified as 0x1AaaDe, still retains 344 ETH, valued at approximately $1.55 million as of the latest update. This incident highlights persisting vulnerabilities affecting smart contracts and decentralized finance operations.
Previous Security Breaches and Platform Response
The recent Abracadabra Money hack is the third major incident affecting the platform. On January 30, 2024, the platform lost roughly $6.5 million in a flash loan attack, which also caused a sharp downturn for the MIM stablecoin. A subsequent breach on March 25, 2025, resulted in the theft of approximately $13 million, triggered by a logical error encountered during the collateral liquidation process. These repeated incidents emphasize enduring risks faced by DeFi projects.
In response to this latest incident, the Abracadabra team announced via its Discord community that DAO reserve funds will be used to repurchase the affected MIM tokens. Despite these updates in the community channel, Abracadabra Money’s official social media (X, formerly Twitter) has not posted any public update since September 9. Reporting via CryptoNews.
Market Impact and Outlook
The immediate aftermath of the Abracadabra Money hack saw SPELL, the platform’s native token, experience a decline in price. However, it later showed signs of recovery, suggesting the market may view the platform’s announced mitigations as a stabilizing factor. This pattern of price fluctuation reflects broader trends following security incidents in decentralized finance.
As security breaches continue to challenge the DeFi landscape, industry observers are watching closely to see how Abracadabra Money strengthens its protocols and communicates with its user base. For more cryptocurrency and DeFi news, visit Vizi’s cryptocurrency section.
What’s Next for Abracadabra Money?
With $1.77 million lost in the most recent attack, Abracadabra Money faces ongoing demands to bolster its smart contract security and restore community confidence. The use of DAO reserves to cover user losses demonstrates a proactive step, but the absence of timely public updates on the platform’s official channels underscores challenges in crisis communication.
Given the pattern of recurring security issues, users and industry participants will be closely monitoring technical improvements and transparency measures. Strengthening smart contract code and frequent, clear community updates remain essential for DeFi platforms aiming to maintain market trust.
Sources: CryptoNews
