The cyberattack on the decentralized finance (DeFi) platform Abracadabra has sent shockwaves through the cryptocurrency market, with nearly $13 million worth of cryptocurrency being stolen in the attack. The cyberattack targeted the platform’s “gmCauldrons,” which are isolated lending markets within Abracadabra that allow users to borrow against crypto collateral. The exploit, which occurred in March 2025, saw 6,260 ETH drained from the platform, with suspicious transactions identified by blockchain security firm PeckShield.
These transactions were linked to contracts from Abracadabra and decentralized exchange GMX, but it was the specific gmCauldrons, not the GMX platform itself, that were compromised. GMX distanced itself from the incident, stating that its contracts were not affected by the exploit. The platform clarified that the attack was limited to Abracadabra’s infrastructure and assured users of the security of its core contracts.
Following the breach, Abracadabra took swift action to mitigate the damage. They enlisted the help of security firm Zeroshadow to disable borrows to the affected cauldrons and prevent further exploitation. The stolen funds were consolidated across three addresses, and the platform worked closely with Chainalysis, a blockchain forensics firm, to trace the movement of the stolen funds. Additionally, a 20% bug bounty was offered to the hacker, along with an invitation to negotiate the return of the funds.
The breach has raised concerns within the DeFi community, although GMX reiterated that its contracts were secure and unaffected by the cyberattack. Security experts from Guardian Audits, GMX, and other researchers are working together to investigate the cause of the exploit. The stolen funds, including 6,260 ETH, have been consolidated across three wallets and bridged to the Ethereum network, making tracking the movement of the funds more challenging.
Despite the complexity of the hack, Abracadabra’s security infrastructure, along with their partnerships with Zeroshadow and Chainalysis, have been instrumental in tracking the stolen funds. The platform has committed to providing a full post-mortem report once the investigation is complete. The incident serves as a reminder of the ongoing challenges faced by DeFi platforms in securing user assets and maintaining trust in the ecosystem.