Ethereum

Arbitrum

Summit

Guardian

Abracadabra Finance has confirmed a security exploit affecting its gmCauldron smart contracts, resulting in the theft of approximately $13 million and is taking steps to recover the funds.The protocol has since disabled borrowing across all cauldrons and is working with blockchain security firms to track the stolen funds, according to a company statement.The <a href="https://crypto.news/13m-stolen-as-gmx-abracadabra-link-breached/" rel="noopener noreferrer nofollow">attack</a>, which blockchain security firm PeckShield <a href="https://x.com/peckshield/status/1904501599848038490" rel="noopener noreferrer nofollow">first flagged</a>, targeted the integration between GMX decentralized exchange and Abracadabra’s lending contracts.&nbsp;“The full damage of the attack is currently being assessed. We are working together with Guardian Audits, GMX, and other security peers to identify the execution of the hack,” the company <a href="https://x.com/MIM_Spell/status/1904535586532180434" rel="noopener noreferrer nofollow">posted</a>.Abracadabra noted that its gmCauldrons underwent audits by Guardian Audits before deployment and were integrated into multiple security monitoring systems — including Zeroshadow tracking and Hexagate response software. Despite these measures, the breach was only detected after the attacker executed multiple transactions.You might also like: <a href="https://crypto.news/crypto-event-of-the-year-in-russia-crypto-summit-2025-takes-place-in-moscow/" rel="noopener noreferrer nofollow"> Crypto event of the year in Russia: Crypto Summit 2025 takes place in Moscow </a>The Zeroshadow team eventually alerted Abracadabra, prompting an immediate shutdown of all borrowing functions.<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper"><blockquote class="twitter-tweet">.<a href="https://twitter.com/GMX_IO?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@GMX_IO</a><a href="https://twitter.com/MIM_Spell?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@MIM_Spell</a> related contracts have been hacked for ~6,260 ETH (worth ~$13M) <a href="https://t.co/LZzMADWB3n" rel="noopener noreferrer nofollow">pic.twitter.com/LZzMADWB3n</a>— PeckShield Inc. (@peckshield) <a href="https://twitter.com/peckshield/status/1904501599848038490?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 25, 2025</a></blockquote></div></figure>Blockchain analytics firm Chainalysis has been enlisted to track the stolen assets, which have been bridged from Arbitrum (<a href="https://crypto.news/price/arbitrum/" rel="noopener noreferrer nofollow">ARB</a>) to Ethereum (<a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) and consolidated into at least three addresses.Abracadabra is offering the attacker a 20% bug bounty to return the remaining funds, stating:“To the hacker, we are happy to entertain negotiations for a bug bounty of 20% of the total. Reach out at reward@abracadabra.money or on-chain to our treasury address on ETH 0xDF2C270f610Dc35d8fFDA5B453E74db5471E126B.”A full post-mortem of the latest exploit will be released once the investigation is complete, the company said.You might also like: <a href="https://crypto.news/kentucky-governor-signs-bitcoin-rights-bill-as-states-push-crypto-legislation/" rel="noopener noreferrer nofollow"> Kentucky Governor signs ‘Bitcoin Rights’ bill as states push crypto legislation </a>

Abracadabra offers hacker 20% bounty after $13M breach

crypto.news

Other articles published on Mar 25, 2025

BNB Chain Introduces $100M Liquidity Support for Native Tokens Listed on Leading Exchanges

Will Bitcoin’s Recovery Shift Market Dynamics?

Can Ripple (XRP) Turn $1,000 Into $1 Million If It Matches Bitcoin’s (BTC) Market Cap?

Davinci Jeremie Urges Crypto Fans to Invest in Bitcoin Now

Polymarket Boosts User Engagement with Solana

BTFD Offers 2X Free with Code LAUNCH100—Must-Buy Cryptos as FLOKI Rises and NEIRO Endures Turbule...

Join our free newsletter for daily crypto updates!