Ransomware Malware Cyber Attack isolated with white highlights

Key Takeaways:

Abracadabra.Finance suffered a $13M exploit targeting cauldrons using GMX liquidity tokens as collateral.
GMX confirmed its core infrastructure remains unaffected; the issue was isolated to Abracadabra’s gmCauldrons.
Abracadabra offered a 20% bug bounty and is investigating with Guardian Audits and other partners.

Abracadabra.Finance, a decentralized lending protocol, suffered a $13 million exploit targeting its GMX-linked “cauldrons”—isolated lending pools using GM tokens as collateral.

The attack led to the theft of approximately 6,260 ETH, valued at nearly $12.98 million.

We are aware of an exploit in relation to our gmCauldrons.

Core contributors and security engineers are investigating the issue in depth and will provide more information as soon as available.

Each gmCauldron was fully audited by @GuardianAudits prior to release. The same lead…
— 🧙🏼‍♂️ (@MIM_Spell) March 25, 2025

While GM tokens were involved, GMX confirmed its core smart contracts were unaffected, emphasizing the vulnerability was specific to Abracadabra’s infrastructure.

The compromised cauldrons, called gmCauldrons, had been previously audited by Guardian Audits, the same firm that audited GMX.

Abracadabra acknowledged the breach, announcing that its core contributors and engineers are actively investigating.

In response, the protocol offered a 20% bug bounty to the attacker, inviting negotiations via email or on-chain message.

User collateral remains unaffected, and Abracadabra is working with Guardian, GMX, and security partners to determine the full impact.

A comprehensive post-mortem will be released once the investigation concludes.

This marks the second major security incident for Abracadabra; in 2024, the platform was hit by a $6.49 million exploit that temporarily caused its Magic Internet Money (MIM) stablecoin to lose its peg to the U.S. dollar.