Abracadabra Recovers Half of $13m Hack Damage

Abracadabra Finance asserts that it has repurchased 6.5 million MIM, amounting to 50% of the total loss resulting from the recent $13 million exploit.

In a blog post released following the hack, the protocol affirmed that user funds remained untouched by the attack and that the team is striving to reinstate the stolen cryptocurrency it had lost in the exploit by obtaining Magic Internet Money or MIM, the USD-pegged stablecoin that forms the basis of the Abracadabra ecosystem.

The statement indicates that the protocol has allocated a portion of its treasury reserves to buy back MIM from circulation in an attempt to decrease supply distortion.

The Abracadabra team wrote, "The DAO treasury, which currently possesses around $19m in assets, has already procured 6.5m MIM and repaid 50% of the overall loss, with the remainder to be absorbed by our treasury over the next few months."

Additionally, it intends to persist in supporting its MIM peg, which succeeded in maintaining its value throughout the crisis, dipping only slightly below the $1.00 mark. At the time of publication, the Ethereum (ETH)-based stablecoin has decreased by 0.5%. MIM is currently being traded at $0.9946 according to data from CoinGecko.

Post-hack strategy of Abracadabra Finance

In the blog post, the protocol also disclosed its plans for the upcoming months as it aims to recover from the hack. Aside from the previously mentioned treasury holding and token remediation plan, the protocol is also planning to expand into the Berachain (BERA) and Nibiru Chain ecosystems.

Furthermore, the AbracadabraDAO revealed that it is also gearing up to incubate a new DEX project named Purrswap. The project will be launched on the HyperEVM chain, and Abracadabra will provide funding, resources, and guidance for the project.

Concerning the recovery of the stolen funds, Abracadabra stated that it is cooperating with Chainalysis to retrieve them. On-chain investigations have so far uncovered that the 6,000 ETH hoard is currently stored in three separate crypto addresses.

The protocol also mentioned that it is open to negotiations with the hacker to reach a compromise that would return its stolen funds.

As previously reported by crypto.news, Abracadabra Finance verified that it had experienced a malicious hack leading to roughly $13 million in losses. The exploit targeted its gmCauldron smart contracts, specifically the integration between decentralized exchange GMX and Abracadabra's lending contracts.