Abracadabra Money Hack

TOTAL LOST $6.4M
Medium Other

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain 2024 Incident surface
Recovered - No recovery reported
All-Time Rank #389 By amount stolen
Protocol Type Exploit/Other Target category

Incident Overview

Quick Summary

Abracadabra Money lending platform exploited, resulting in a loss of 6,414,205 USD (2737.48 ETH).

Details of the Exploit

Abracadabra Money, a DeFi crypto lending platform, was exploited on January 30, 2024. The root cause of the exploit was a loss of precision during smart contract operations, specifically a rounding issue. Preliminary findings indicate that the attacker targeted specific Cauldrons V3 & V4, allowing unauthorized MIM borrowing.The attacker was funded by Tornado Cash The stolen funds were transferred to two other EOAs.

Block Data Reference

Attacker Address:

https://etherscan.io/address/0x87F58580…b678C9

Funds Holders as of Feb 01, 2024:

https://etherscan.io/address/0xbD12D605…b52Fd3

https://etherscan.io/address/0x40d5FFA2…19c714

Malicious Transactions:

https://etherscan.io/tx/0x26a83db7…7e4cf2

https://etherscan.io/tx/0xdb4616b8…b6d877

Malicious Contracts:

https://etherscan.io/address/0xc8a03248…850CB1

https://etherscan.io/address/0x193E045B…39CE67

https://etherscan.io/address/0xE1091D17…b77A45

https://etherscan.io/address/0x13AF445F…c95912

Funded by TornadoCash:

https://etherscan.io/tx/0x63e64e7e…dccf84

Incident Report

Protocol / Project Abracadabra Money
Date of Incident
Attack Technique Other
Classification Borrowing and Lending
Primary Source View Post-Mortem

Protocol Information

Protocol Type Exploit/Other
Affected Token MIM
Official Website abracadabra.money/
Protocol Twitter/X @MIM_Spell
Team Anonymous
Source Code Verified On-Chain

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.

Technical Knowledge Deep understanding of other and Solidity and EVM internals
Capital Required Seed capital to cover gas and initial position setup
On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract
Protocol Analysis Identification of the exploitable vulnerability in Abracadabra Money's contract logic - root cause: borrowing and lending
Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block
Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Likely — with a thorough Other audit checklist and test coverage

If you're auditing a protocol with similar architecture to Abracadabra Money, these are the critical security checks that could have prevented this incident (January 2024).

  • Verify all logic paths related to Other are guarded by proper access controls and input validation
  • 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.

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Sources & References

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