Approximately $13 million was stolen in the recent hack of the crypto exchange GMX’s integration with Abracadabra.
On March 25, blockchain security firm PeckShield reported a significant security breach involving GMX decentralized exchange. Specifically, contracts related to Abracadabra were hacked, resulting in the theft of about 6,260 Ethereum, valued at roughly $13 million.
Jonezee, a GMX representative, clarified that GMX’s core contracts remain secure, and the incident was limited to the integration between Abracadabra and GMX V2. He stated that the Abracadabra team is actively investigating the breach to determine the vulnerability’s root cause. Jonezee wrote on his x post:
“To clarify, GMX contracts are not affected. It relates to Abracadabra/Spell’s cauldrons based on GMX V2’s GM pools. The contributors are currently looking into the cause, and I’d like to apologize wholeheartedly to anybody negatively affected. This is very unfortunate,”
Abracadabra’s cauldrons are smart contracts facilitating DeFi activities like lending, borrowing, and liquidity provision, relying on GMX V2’s GM pools for liquidity. This integration allows Abracadabra to utilize GMX’s liquidity system for its products.
The latest update indicates that the stolen funds have been bridged from Arbitrum to Ethereum and are currently distributed across three addresses.
This is not the first time Abracadabra has encountered security issues; in January 2024, the Magic Internet Money (MIM) stablecoin was exploited due to a vulnerability that allowed attackers to manipulate its price.
