Source: iStock \/ Xijian<\/p>\n
Popular Ethereum-based decentralized finance (DeFi) lending protocol Abracadabra Money fell victim to a platform attack on January 30.<\/p>\n
Announcing the incident on its official X (formerly Twitter) handle<\/a>, the DeFi protocol stated that it is aware of an exploit on its platform that involved \u2018certain cauldrons on Ethereum<\/a>.\u2019 Its engineering team is investigating the situation, they noted.<\/p>\n We are aware of an exploit involving certain cauldrons on Ethereum.<\/p>\n Our engineering team is triaging and investigating the situation.<\/p>\n To the best of its Ability, the DAO treasury will be buying back MIM from the market to then burn.<\/p>\n More updates are coming.<\/p>\n \u2014 (@MIM_Spell) January 30, 2024<\/a><\/p>\n <\/span> While the platform has been forthcoming about the platform hack, it did not disclose how much in funds were stolen by the malicious actor.<\/p>\n Providing further details on the hack, Cyvers Alerts revealed on social media<\/a> that the perpetrator managed to abscond with $6.5 million in crypto assets. This resulted in over 2,740 Ether tokens being illicitly withdrawn from the Abracadabra Money platform\u2019s wallet address.<\/p>\n Around $4 million out of the pilfered loot was then transferred to a new Ethereum-based wallet address.<\/p>\n ALERTOur AI powered system has detected multiple suspicious transactions with @MIM_Spell<\/a> (Ongoing)<\/p>\n Based on our first investigation, attacker was able to gain around $6.5M.<\/p>\n Attacker was funded by @TornadoCash<\/a>. Around $4M already transferred to a new EOA at\u2026 pic.twitter.com\/41tJtKh97Q<\/a><\/p>\n \u2014 Cyvers Alerts (@CyversAlerts) January 30, 2024<\/a><\/p>\n According to blockchain security and analytics firm Peckshield, the hacker executed<\/a> the cyberattack using an initial 1 Ether funded through the US-sanctioned crypto mixing protocol Tornado Cash.<\/p>\n <\/span> Subsequently, users can trade or lock up these DeFi tokens on other decentralized application<\/a> (dApp) platforms to generate passive income.<\/p>\n The recent hack on the platform is not an isolated event but rather part of a trend in the crypto industry, particularly within the DeFi sub-sector.<\/p>\n Since its launch in August 2020, smart contract-backed financial systems have consistently been targeted by various cyber threat groups.<\/p>\n In 2021 alone, DeFi projects incurred losses exceeding $3.2 billion<\/a>, primarily within the blockchain-based financial system.<\/p>\n While the total losses in 2022 decreased to $3.1 billion<\/a>, the trend has continued to decline in the past year. According to a Chainalysis annual report, total crypto losses in 2023 amounted to $1.7 billion, indicating a considerable 54.3% drop from the previous year.<\/p>\n Funds stolen from crypto platforms in 2023 fell 54.3% to $1.7 billion. This is mostly due to a drop in DeFi hacking, which drove the increase in stolen crypto that we saw in 2021 and 2022. However, there still were several large DeFi hacks in 2023. pic.twitter.com\/s8Ix982HR2<\/a><\/p>\n \u2014 Chainalysis (@chainalysis) January 24, 2024<\/a><\/p>\n Despite the drop in fiat value stolen, the report highlighted a slight increase in the number of cyber threats compared to 2022. In 2022, there were 219 cyber threats, which rose to 231 in 2023, according to the blockchain security firm.<\/p>\n The report also delves into the role of bad actors, with the North Korea-backed Lazarus Group<\/a> notably standing out. Chainalysis revealed that this cyber threat group accounted for $1 billion out of the $1.7 billion total losses and launched a record number of 20 attacks.<\/p>\n Value lost in DeFi hacks declined by 63.7% YoY. @mgimenezaguilar<\/a> at @HalbornSecurity<\/a> shared potential reasons behind this decline, citing DeFi security improvements, but also the overall drop in DeFi TVL, which may have reduced funds available to steal.<\/p>\n \u2014 Chainalysis (@chainalysis) January 24, 2024<\/a><\/p>\n Giving reasons behind a lower loss ratio, Chainalysis stated that better security measures and lower amounts of digital assets in the DeFi space played important roles.<\/p>\n The post Abracadabra Money in Crisis as $6.5 Million Crypto Theft Sends Shockwaves Across DeFi Community<\/a> appeared first on Cryptonews<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Source: iStock \/ Xijian Popular Ethereum-based decentralized finance (DeFi) lending protocol Abracadabra Money fell…<\/p>\n","protected":false},"author":0,"featured_media":22300,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-22299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/22299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/comments?post=22299"}],"version-history":[{"count":0,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/22299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media\/22300"}],"wp:attachment":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media?parent=22299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/categories?post=22299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/tags?post=22299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The Financial Impact on Abracadabra Money<\/strong><\/h2>\n
\nIn an effort to mitigate the impact of the crypto theft, the Abracadabra decentralized autonomous organization<\/a> (DAO) treasury will be buying back its Magic Internet Money (MIM) tokens from the market for burning.<\/p>\nCrypto Thefts Dipped 54% in 2023<\/h2>\n
\nAbracadabra Money is a non-custodial stablecoin DeFi lending protocol that enables users to deposit various crypto assets as collateral and receive its MIM token in return.<\/p>\n