DeFi protocol Abracadabra Money was hacked, losing $1.7 million, with funds transferred to Tornado Cash, as reported by blockchain researcher @officer_cia.
The breach highlights ongoing vulnerabilities in DeFi platforms, impacting market trust and catalyzing discussions on security protocols and asset protection.
Abracadabra Money, a well-known DeFi lending platform, experienced a security breach resulting in a loss of approximately $1.7 million. The stolen funds were quickly moved to Tornado Cash, effectively hiding the transactions. Security researchers like @officer_cia and Weilin William Li have independently confirmed the exploit.
In response to the incident, all affected smart contracts with vulnerabilities have been paused. Analysts suggest the vulnerability allowed attackers to bypass solvency checks, emphasizing notable security concerns in its smart contract code. The hack highlights ongoing security challenges within the DeFi sector.
“It seems Abracadabra @MIM_Spell is hacked again. This time a more obvious vulnerability, where an ‘else’ branch clears the status variables and sets ‘needSolvencyCheck’ to false by default. They have paused all their contracts now.” — Weilin William Li, DeFi Researcher
Market observers have echoed concerns about the platform’s safety. No official comment from Abracadabra Money’s executive team has emerged as of yet. The community’s response has focused on stress testing and reviewing smart contract logic as the primary mitigation measure.
Did you know? Abracadabra Money’s previous hack in March 2025 cost $13 million, significantly higher than the recent breach, underscoring better breach mitigation measures.
In recent market data from CoinMarketCap, MAGIC*INTERNET*MONEY currently holds a market cap of formatNumber(35671407, 2) with a trading volume decrease of 16.98%. The MIM token has seen notable changes, registering a 90-day price increase of 19.83%, despite experiencing a 60-day decline of 40.26%.
Financial analysts from the Coincu research team suggest further regulatory scrutiny could potentially arise if DeFi vulnerabilities persist in such prominent hacks. Industry watchers continue to stress the importance of enhanced smart contract audits and governance improvements.
