Incident Overview
Abracadabra Money was exploited via the oracle issue. The attacker used temporarily $MIM depegging and profited for 110,911 $USD.
Abracadabra.Money is a decentralized protocol providing staking, lending, and borrowing opportunities. The protocol's lending pool was exploited via the oracle issue. Temporarily depegging of $MIM stablecoin allowed the attacker to withdraw 110,911 $MIM tokens at nearly zero cost using a deployed smart contract with unverified source code.
All the stolen funds were transferred through Tornado Cash.
Attacker address:
https://etherscan.io/address/0xb7ea0f0f…688005
Malicious transaction:
https://etherscan.io/tx/0x3d163bfb…537c78
Malicious contract:
https://etherscan.io/address/0x8c761066…11fd4d
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Abracadabra Money, these are the critical security checks that could have prevented this incident (November 2022).
- Verify all logic paths related to Oracle Issue are guarded by proper access controls and input validation - see the Oracle Manipulation & Price Manipulation attack class for patterns
- Audit oracle price feeds for manipulation risks - ensure time-weighted average prices (TWAPs) or multi-source aggregators are used, not spot prices
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialRelated Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
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