Magic Internet Money
Summary
Abracadabra Money is a DeFi lending protocol that issues Magic Internet Money (MIM), a USD-pegged stablecoin minted against interest-bearing collateral, governed by the SPELL token. The protocol has experienced three confirmed smart contract exploits between January 2024 and October 2025 totaling over $21 million in losses, multiple MIM depegging events triggered by collateral failures and hacks, and a severe governance credibility crisis in early 2022 after its affiliated Wonderland project's treasury manager was revealed to be a convicted felon and QuadrigaCX co-founder. SPELL has declined over 99.7% from its all-time high and the protocol's TVL has fallen from a 2021 peak in the billions to under $10 million as of mid-2026.
Timeline(16 events)
2021-06-01
Abracadabra Money launches, introducing MIM stablecoin and SPELL governance token
Gemini Cryptopedia2021-08-01
Popsicle Finance (sister Frog Nation project) exploited for $20.7 million via Sorbetto Fragola pool vulnerability
Phemex Academy2021-11-01
SPELL token reaches all-time high of approximately $0.075; Abracadabra TVL peaks at billions in managed assets
CryptoNews SPELL Price Prediction2022-01-26
Wonderland's TIME token collapses to a low of $420 after a $8.4 million withdrawal from the multi-sig treasury sparks liquidation cascade
CoinDesk2022-01-27
ZachXBT publicly identifies Wonderland treasury manager 0xSifu as Michael Patryn (Omar Dhanani), convicted felon and QuadrigaCX co-founder; TIME, SPELL, and ICE all crash
CoinDesk2022-01-27
Sestagalli publicly confirms he knew Sifu's identity before the disclosure and chose not to inform the community
CoinDesk2022-02-01
Sestagalli announces Wonderland's closure despite community snapshot vote narrowly favoring continuation, overriding DAO governance outcome
BeInCrypto2022-06-18
MIM stablecoin drops to $0.914 amid Terra/LUNA contagion; Autism Capital alleges $12 million in bad debt from UST lending market exposure
CoinTelegraph2022-11-08
MIM depegs to approximately $0.952 as FTX collapses; FTT tokens comprising an estimated 33–35% of Abracadabra cauldron collateral become near-worthless
CoinDesk2022-11-01
Abracadabra community votes on AIP #10 bad debt repayment plan; protocol commits to repaying 5% of bad debt monthly from treasury fee revenue over 20 months
Abracadabra Forum2023-08-01
SPELL records then-all-time low of approximately $0.0003498
CryptoNews SPELL Price Prediction2024-01-30
Abracadabra exploited for $6.5 million via Cauldron V3/V4 rounding vulnerability on Ethereum; MIM crashes to $0.76
CoinDesk2025-03-25
Abracadabra exploited for approximately $13 million via self-liquidation flash loan attack targeting GMX V2 GM pool cauldrons on Arbitrum; 6,260 ETH stolen across 56 transactions
CoinDesk2025-10-04
Abracadabra exploited for $1.8 million via cook() function logic error in deprecated Cauldron V4 contracts; funds laundered via Tornado Cash
Halborn2026-02-06
SPELL records new all-time low of approximately $0.0001648
CryptoNews SPELL Price PredictionDecision Log
- hash: EnWC9DQmVfzCdKpCrX5S5MEBdFGMUgkwphUkTRiKfsd6
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/14/2026, 5:07:36 AM
last updated: 5/14/2026, 5:07:43 AM
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