Abracadabra Hit by $1.8 Million DeFi Exploit — Third Major Hack Since 2024

HKAN | Oct 6

According to reports, Abracadabra, a decentralized finance (DeFi) protocol known for its Magic Internet Money (MIM) stablecoin, has suffered another exploit — this time resulting in a loss of approximately $1.8 million.

This marks the third major security breach for the protocol since 2024, raising renewed concerns about DeFi security vulnerabilities and the resilience of smart contract platforms.

Blockchain investigators suggest that attackers exploited a vulnerability in the protocol’s collateral liquidation process, draining funds from the system before safeguards could trigger.

The Abracadabra team has acknowledged the incident and stated that it is working with security partners to trace stolen funds and strengthen its codebase to prevent future breaches.

Despite repeated hacks, Abracadabra remains a notable player in the DeFi ecosystem, operating across multiple blockchains including Ethereum, Arbitrum, and Avalanche.