Abracadabra.Money's GMX Pools Hacked, $13M Lost

A devastating cyberattack has struck the decentralized lending protocol Abracadabra.Money, resulting in the theft of approximately $13 million worth of cryptocurrency. The hack targeted pools linked to GMX tokens, leaving users reeling from the news.

According to a report filed on March 25 by crypto cybersecurity firm PeckShield, contracts related to GMX and Abracadabra.Money were compromised, leading to the loss of around 6,260 Ether (ETH). The stolen amount is equivalent to approximately $13 million.

The Controversy Surrounding GMX

Initially, there was confusion surrounding the involvement of GMX in the hack. A pseudonymous GMX communications contributor claimed on X that "GMX contracts are not affected." However, this claim has been disputed by PeckShield and other experts.

A more recent statement from GMX asserts that the hack involved MIM's pools that used GM tokens. The company maintains that no issues have been identified with its own smart contracts, stating: "No issues have been identified with GMX contracts."

The Investigation Reveals a Sophisticated Attack

Crypto forensics firm AMLBot provided Cointelegraph with a partial reconstruction of how the hack was performed. According to their findings, the hacker's address was first funded through the Tornado Cash decentralized cryptocurrency mixer, and then those funds were used to pay transaction fees for malicious transactions.

AMLBot also confirmed that only Abracadabra.Money contracts were breached as part of the hack, while GMX smart contracts were not exploited in the malicious transactions. This suggests that the attack was highly targeted and sophisticated.

Avoiding Panic: The Importance of Vigilance

As with any significant security breach, it is essential for users to remain vigilant and take necessary precautions to protect their assets. Abracadabra.Money and GMX have both assured users that they are taking steps to address the issue and prevent similar attacks in the future.

However, this incident serves as a stark reminder of the importance of robust security measures and ongoing monitoring in the cryptocurrency space. As DeFi continues to grow and evolve, so too must our defenses against cyber threats.