Abracadabra Finance Faces $13 Million Loss Due to Security Breach
Abracadabra Finance has disclosed a security breach impacting its gmCauldron smart contracts. The incident led to the theft of around $13 million. The company has taken immediate action to recover the funds.
Following the attack, Abracadabra disabled borrowing across all its cauldrons.They are collaborating with blockchain security experts to trace the stolen assets. PeckShield, a blockchain security firm, first reported the exploit.
The breach targeted the link between GMX decentralized exchange and Abracadabra’s lending contracts. The company stated,”We are working with Guardian Audits,GMX,and other security partners to understand the hack.”
Despite undergoing audits and using security monitoring systems like Zeroshadow and Hexagate, the breach was only detected after several transactions.Zeroshadow eventually alerted Abracadabra, leading to the shutdown of borrowing functions.
Chainalysis, a blockchain analytics firm, is helping track the stolen assets. The funds were moved from Arbitrum to Ethereum and consolidated into three addresses.
Abracadabra is offering the attacker a 20% bug bounty to return the remaining funds. They invite the hacker to negotiate via email or on-chain.
A full report on the exploit will be released once the investigation concludes.
