rewrite this title and make it good for SEO Crypto Lending Platform Abracadabra Exploited for $13M in Flash Loan Attack – NFTgators

Quick take:

Crypto security firms PeckShield, CertiK and SlowMist were among the first to notice the attack, alerting the crypto community via the X platform.

The attack reportedly involved the liquidation process in the integration of Abracadabra’s cauldrons on GMX V2’s GM pools.

Crypto researcher Weilin (William) Li said on X that the attacker used a seven-step process to borrow and liquidate Abaracadabra’s ”Magic Internet Money” stablecoin.

Abracadabra, the omnichain DeFi lending platform, has been exploited for $13 million. According to reports on Tuesday, the attacker targeted the platform’s smart contracts to steal 6,262 ETH from the liquidity pools.

The attack was reported by the security firms PeckShield, CertiK and SlowMist, alerting the crypto community via the X platform. 

According to crypto researcher Weilin (William) Li, the attack involved the liquidation process in the integration of Abracadabra’s cauldrons on GMX V2’s GM pools. 

This exploit follows another hack reported in January 2024, which resulted in the protocol losing $6.49 million and a depegging of its Magic Internet Money (MIM) stablecoin to the U.S. dollar.

Commenting on the exploit via an X post, GMX wrote: “There appears to have been an exploit related to Abracadabra/Spell’s cauldrons that utilise GM tokens, as noted by PeckShield and other security specialists monitoring the blockchain.”

The on-chain spot and perpetual exchange platform assured users that no issues had been identified with GMX contracts and that “they are not affected by this unfortunate situation.”

At the time of this writing, the company had already tasked contributors from Spell, GMX, and security researchers to investigate the issue.

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