Ethereum News: $13 Million Worth of Cryptocurrency Stolen in Abracadabra.Finance Exploit

In a significant blow to the decentralized finance (DeFi) sector, Abracadabra.Finance, a popular lending platform, has fallen victim to a major exploit. Here’s what you need to know about the incident and its implications.

Abracadabra.Finance Drained of $13M in Cryptocurrency Exploit

The decentralized lending platform Abracadabra.Finance suffered an attack that drained $13 million worth of cryptocurrency from pools tied to GMX liquidity tokens. Blockchain security firm PeckShield flagged that contracts involving decentralized exchange GMX and Abracadabra were compromised, leading to the theft of 6,260 ETH, worth around $12.98 million. The exploit focused on "cauldrons," isolated lending markets in Abracadabra where users can borrow against crypto collateral. These cauldrons relied on GM tokens, which represent liquidity positions in GMX. GMX distanced itself from the incident, stating that its contracts themselves were unaffected.

DeFi Platform MIM Spell Offers Bounty After $12.9 Million ETH Heist

Blockchain security firm Cyvers reported a major security breach affecting the DeFi platform Abracadabra’s MIM_Spell. The attack resulted in the loss of 6,262 ETH, equivalent to approximately $12.9 million. The attacker bridged the stolen ETH to the Ethereum network and distributed the funds across three newly generated wallets. On March 25, MIM confirmed the exploit in a statement, specifying that the gmCauldron smart contracts were targeted. These contracts had previously passed audits by Guardian Audits. The platform also noted additional security layers, including integrations with Hexagate and ZeroShadow’s threat-tracking system.

Ethereum’s Next Move: Will It Surge to $2,800 or Face a Breakdown?

Ethereum has the potential to surge to $2,800 if it manages to break through key resistance levels between $2,100 and $2,150. Analyst Michael van de Poppe noted that a declining US Dollar Index (DXY) could signal a strong second quarter for the cryptocurrency market. However, Ethereum’s burn rate has dropped to historic lows, leading to an inflationary environment with a 0.76% annual supply increase. Despite this, Ethereum is approaching a significant resistance level, and a break above this could trigger a sharp move upwards.

World Liberty Financial Launches USD1 Stablecoin Backed by US Treasuries and Dollar Reserves

President Trump’s crypto venture World Liberty Financial Inc. (WLFI) has announced the launch of its new stablecoin, USD1. This digital asset will be fully backed by US treasuries, dollar deposits, and cash equivalents, ensuring stability. USD1 is designed to maintain a 1:1 peg with the US dollar and will be available on the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains, with plans to expand to other networks.