Abracadabra Money Discovers $6.49M Ethereum Exploit

Abracadabra Money uncovered a $6.49 million exploit in its Ethereum cauldrons which allowed users to borrow the Magic Internet Money.

A cross-chain lending company known as Abracadabra Money has confirmed that it has discovered an exploit that involves the Ethereum cauldrons of the protocol.

This exploit enables users to borrow the Magic Internet Money (MIM) stablecoin by utilizing various assets as collateral. The exploit is worth $6.49 million.

Abracadabra money acknowledged the exploit and the MIM development team claimed they were conducting an investigation. According to what they indicated, the governing body of the protocol intends to recompense victims through a process that involves buy-back and burn.

The blockchain security company PeckShield discovered the exploit on Tuesday, worth $6.49 million. The unidentified exploiter reportedly used the cryptocurrency mixer Tornado Cash to initially fund the attack with one Ethereum.

The security firm provided this information. CoinMarketCap statistics show that MIM, an algorithmic stablecoin pegged to the United States dollar dropped to $0.77 before recovering and reaching its current value of $0.94.

Research published by the blockchain security company CertiK suggests that a “rounding issue” may have created the vulnerability. The attacker repeatedly called the “userBorrowPart()” function from the v4 cauldrons of the protocol followed by the “repay()” function.

This suggests that the attacker borrowed and repaid loans on several occasions, which in some way enabled them to drain cash from the contract.

Magic Internet Money was likewise depreciated in 2022 as a result of the consequences that resulted from the collapse of the Terra environment.

In August, the protocol increased the interest rate on the coin by a factor of two hundred percent to mitigate the danger posed by the Curve protocol.