A recent exploit on Abracadabra.Money, a cryptocurrency lending platform, targeted pools that were built using GMX
$14.10
tokens.
The issue was reported on March 25 by PeckShield Inc., a cybersecurity firm. According to their findings, contracts connected to both Abracadabra.Money and GMX, a decentralized perpetual exchange, were affected, which led to the loss of about 6,260 ETH, worth approximately $13 million.
A GMX representative stated that the exchange’s own contracts had not been impacted. They explained that the pools involved are based on GMX v2 tokens, which are used by Magic Internet Money (MIM), but the issue did not stem from GMX itself.
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GMX tokens are used to collect fees from trades and leveraged positions. On Abracadabra.Money, users borrow from pools known as “cauldrons”, which are tied to specific assets like GMX tokens. These cauldrons allow users to lock in collateral and take out loans, depending on what they deposit.
GMX confirmed in a post on X that the problem was linked to MIM’s use of GMX tokens. The team said no flaws were found in GMX’s smart contracts and pointed to the cauldrons as the likely source of the issue.
This is not the first time Abracadabra.Money has faced a security problem. In January 2024, Abracadabra.Money lost $6.49 million due to a separate smart contract breach.
On March 18, a hacker stole 55.5 Ethereum—worth around $106,200—from aixbt, an AI-driven crypto trading bot. How? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
