Hackers Breach DeFi Protocol Abracadabra for $1.8 Million

Abracadabra Finance lost nearly $1.8 million in MIM stablecoins due to a hack.

A hacking incident resulted in the loss of nearly $1.8 million in MIM stablecoins from the DeFi project Abracadabra Finance.

.@MIM_Spell was attacked hours ago, resulting in a loss of ~$1.7M. The root cause stems from the flawed implementation logic of the cook function, which allows users to execute multiple predefined operations in a single transaction. Specifically, the actions share a common… pic.twitter.com/4tQzkRbwcT

— BlockSec Phalcon (@Phalcon_xyz) October 4, 2025

This marks the third breach for the platform.

According to BlockSec Phalcon, the attacker exploited a vulnerability in the smart contract, bypassing the solvency check. The attack address received initial funding through Tornado Cash. Following the breach, the hacker exchanged the stolen tokens for ETH and sent them back to the mixer.

A representative of DAO Abracadabra, known as 0xMerlin, stated that the attack vector was found in outdated contracts. He noted that the issue has been resolved. The lost MIM was repurchased from the market by the decentralized organization. He emphasized that user funds were not affected.

0xMerlin added that the team is reviewing internal processes to enhance security. At the time of writing, the protocol had not issued an official public statement.

Back in 2024, Abracadabra lost $6.5 million.

In March 2025, a hacker stole approximately $13 million from the project’s pools.