Abracadabra Finance, a cross-chain lending platform, experienced a $6.49 million theft due to contract exploitation, leading to the destabilisation of its Magic Internet Money (MIM) stablecoin.
The attack targeted Ethereum cauldrons used for borrowing MIM with collateral.
The MIM development team confirmed the exploit and is investigating the breach.
The attacker utilised Tornado Cash to obscure their identity and fund the attack with one Ether.
In response, the protocol's governing body plans to stabilise MIM's value and compensate affected users through a buy-back and burn process, prioritising the community's trust and integrity.