DeFi protocol Abracadabra loses $6,5 million in hacker attack

BlockSec estimates that approximately $29 million in assets remain at risk

30.01.2024 - 15:11

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What’s new? The multi-chain protocol for the Abracadabra cryptocurrency lending has been hacked for $6,5 million, analysts at blockchain company PeckShield report. BlockSec experts noted that the attackers attacked the project’s smart contract, taking advantage of a rounding problem that resulted in a so-called “precision loss.” The company estimates that approximately $29 million in assets remain at risk.

Source: Twitter.com

Source: Twitter.com

What else is known? The Abracadabra team has confirmed the incident and launched an investigation. “To the best of its Ability, the DAO treasury will be buying back MIM from the market to then burn,” the project said in a statement.

Source: Twitter.com

Abracadabra was co-founded by Daniele Sesta, known for his involvement in projects such as Wonderland Money and Popsicle Finance. The protocol allows users to deposit various cryptocurrencies as collateral to borrow MIM.

The incident caused the stablecoin exchange rate to briefly drop below $0,7 before recovering to $0,95.

Earlier, Chainalysis analysts reported that DPRK hackers launched a record number of attacks on crypto projects in 2023, stealing over $1 billion.

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