Decentralized finance (DeFi) protocol Abracadabra Money (SPELL) has suffered another security breach, marking its third major exploit in less than two years.
Blockchain security firm GoPlus Security confirmed that the platform lost roughly $1.77 million after hackers drained funds from its lending and stablecoin system.
Investigators tracking the movement of stolen assets say the attacker quickly moved 51 ETH through the crypto mixer Tornado Cash, a tool often used to obscure transaction trails. The wallet tied to the hack – identified as 0x1AaaDe – still controls 344 ETH, valued at about $1.55 million at the time of reporting.
DAO Steps In to Contain the Fallout
In a brief statement shared on Discord, Abracadabra’s team said its DAO reserves will be deployed to repurchase the affected Magic Internet Money (MIM) tokens, aiming to restore stability to the project’s ecosystem. The team has not yet posted any updates to its official X account, which has been inactive since early September.
Community members have raised concerns about the project’s ongoing security lapses and limited communication during crises.
A History of Painful Exploits
The latest incident continues a troubling pattern for the SPELL ecosystem. In January 2024, a flash loan exploit drained around $6.5 million and caused a temporary depeg of its MIM stablecoin. Two months later, in March 2025, another vulnerability – this time linked to collateral liquidation logic -resulted in a loss exceeding $13 million.
Security experts say these recurring flaws highlight the persistent risk facing complex DeFi protocols that rely on interconnected smart contracts.
SPELL Token Reacts to the News
Following the breach, SPELL’s price briefly dipped as traders rushed to offload their tokens. However, the decline was short-lived, with the market showing signs of recovery after reports that the DAO would compensate affected users.
Despite the rebound, investor confidence in Abracadabra remains shaky as the community awaits a formal explanation from the development team and updates on its plans to reinforce smart contract security.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/defi-platform-suffers-third-major-hack-in-two-years-1-7-million-stolen/
