On March 25, 2025, Abracadabra.Money suffered a significant security breach, leading to a loss of $13 million in Ether (ETH). This was a targeted attack on liquidity pools involving GMX tokens and marks the second exploit this year.

This incident follows a $6.49 million hack in January, which compromised the Magic Internet Money (MIM) stablecoin. The January breach caused MIM’s value to drop significantly, raising wider concerns over security in decentralized finance.

In response to the breach, Abracadabra halted borrowing and offered a bounty of 20% for the return of stolen funds. Security firms are actively monitoring the situation as security questions arise regarding the platform’s measures despite past audits.