Abracadabra Spell
Last changed 2026-11-02 · Fact-check review — Fact-check review (verdict: revise): the reviewer checked the page's claims against its sources; the trust score was recalculated from the page's findings, 53 → 57. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -9.6 |
| Incidents it suffered (e.g. hacks) | -3.2 |
| Problems around it, caused by others | -0.8 |
| Long-running | +6 |
| Sum | 57 |
- 2 sections set aside: the claims did not hold up in a fact-check, pending correction.
Score: 57/100 (kept between 0 and 100)
How scoring works →Page reliability: Fact-checked 2026-11-02 · 4 of 11 claims confirmed · 3 need better sources · 2 disputed · 2 out of date
anchored·4sk2Bm…E35NSummary
Abracadabra.money is a multi-chain DeFi lending protocol that allows users to mint the MIM (Magic Internet Money) USD-pegged stablecoin using interest-bearing tokens as collateral. The protocol has been compromised three times since January 2024, losing a combined total of over $21 million, and its founding ecosystem was shaken in January 2022 when co-founder Daniele Sestagalli's associate — Wonderland's pseudonymous treasury manager known as 0xSifu — was publicly identified as Michael Patryn, a convicted felon and co-founder of the fraudulent exchange QuadrigaCX. The SPELL token has declined approximately 99.5% from its November 2021 all-time high, and the protocol's total value locked has collapsed from over $776 million to under $30 million.
Connected Entities
15 entities · 60 linked investigations- Magic Internet Money→mentioned with→ZachXBT(70%)
- Magic Internet Money→mentioned with→QuadrigaCX(80%)
- Magic Internet Money→mentioned with→Ethereum(80%)
- Magic Internet Money→mentioned with→Arbitrum(70%)
- Abracadabra Money→mentioned with→QuadrigaCX(75%)
- Abracadabra Money→mentioned with→ZachXBT(65%)
- Abracadabra Money→mentioned with→Ethereum(65%)
- Abracadabra Money→mentioned with→Arbitrum(65%)
- ZachXBT→mentioned with→Ethereum(70%)
- ZachXBT→mentioned with→Binance(60%)
- + 47 more
Connected Through
13 shared actors · 587 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Ethereumorganization
- □ZachXBTorganization
- □Binanceorganization
- □Arbitrumorganization
1 submission awaiting moderator review.
Timeline(9 events)
November 2021
Abracadabra.money launches; SPELL token reaches all-time high of approximately $0.035.
15 January 2022
Wonderland (Frog Nation) records near all-time high TVL of approximately $776 million.
27 January 2022
ZachXBT publicly reveals that 0xSifu, Wonderland's pseudonymous CFO/treasury manager, is Michael Patryn — convicted felon and QuadrigaCX co-founder. Daniele Sestagalli admits he knew Patryn's real identity for approximately one month prior to the disclosure.
29 January 2022
Wonderland DAO votes 88% in favor of removing Sifu as treasury manager; a second vote elects to continue protocol operations rather than unwind.
27 January 2022
SPELL, TIME, and ICE tokens crash on news of the Sifu scandal; approximately $130 million in MIM is dumped by a single wallet within days.
May 2022
Terra/LUNA ecosystem collapses. Abracadabra's Degenbox strategy — which created recursive MIM-UST leverage loops — suffers significant contagion losses. MIM experiences depeg pressure.
30 January 2024
First major exploit: rounding precision bug in Cauldron V3/V4 contracts allows attacker to drain approximately $6.5 million in ETH and MIM. MIM briefly depegs to $0.76.
March 2025
Second major exploit: attacker drains approximately $13 million (6,262 ETH) via state-tracking flaw in GMX V2 Cauldron integration using a multi-step self-liquidation attack.
4 October 2025
Third major exploit: logic error in deprecated PrivilegedCauldronV4 cook() function allows attacker to bypass solvency checks and steal approximately 1,793,766 MIM and 395 ETH (~$1.8 million). Funds laundered via Tornado Cash. PeckShield subsequently alleged to have missed the vulnerability in a prior audit.
Decision Log
- slot 464367827 · hash AqCFAGqnE17bfYfV5HCeHDGhG7RnKR4H6eFFMouru1od
- slot 464367822 · hash BekZx1rr46UARCHEZQgzaJhtqwEthgqmKpCFnm46MFuS
- slot 464367816 · hash BPZt7DbggjTvAucn9DDCYeXvnxuiG3d4j9JDgpKNofqF
- slot 455369555 · hash 4zp692dwr3844JfxD6i7QWn385cnNYkJPHtjpTDkbXbw
- slot 420837902 · hash FyxrBeqSBLSFzkjbBkZkMPZM1xXn4CQR7ZWzFxv2q45r
This investigation is cryptographically anchored to the Solana blockchain (5 decisions). 20 of 23 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:35 AM
last updated: 11/2/2026, 4:52:53 AM
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