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Magic Internet Money

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[AI-DRAFTED · AWAITING VERIFICATION]

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anchored·4o8U4g…RTPN

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.

Connected Entities

18 entities · 60 linked investigations
Individuals
○Michael Patryn○Daniele Sestagalli
Organizations
□QuadrigaCX0□QuadrigaCX□Ethereum64□Fantom (Sonic Labs)□Tether□Magic Internet Money□QuadrigaCX / Gerald Cotten□Arbitrum□Terra/Luna□Abracadabra Money□ZachXBT□Popsicle Finance□Wonderland
Protocols
Tokens
♦Bitcoin
Relationships
  • Daniele Sestagalli→member of→Magic Internet Money(95%)
  • Michael Patryn→member of→Magic Internet Money(90%)
  • Wonderland→associated with→Magic Internet Money(90%)
  • Popsicle Finance→associated with→Magic Internet Money(85%)
  • QuadrigaCX→associated with→Magic Internet Money(80%)
  • Daniele Sestagalli→controls→Wonderland(90%)
  • Daniele Sestagalli→controls→Popsicle Finance(85%)
  • Michael Patryn→member of→Wonderland(90%)
  • Michael Patryn→member of→QuadrigaCX(85%)
  • Ethereum→mentioned with→Bitcoin(60%)
  • + 41 more
Have evidence about Magic Internet Money?

Timeline(16 events)

June 2021

Abracadabra Money launches, introducing MIM stablecoin and SPELL governance token

Gemini Cryptopedia

August 2021

Popsicle Finance (sister Frog Nation project) exploited for $20.7 million via Sorbetto Fragola pool vulnerability

Phemex Academy

November 2021

SPELL token reaches all-time high of approximately $0.075; Abracadabra TVL peaks at billions in managed assets

CryptoNews SPELL Price Prediction

26 January 2022

Wonderland's TIME token collapses to a low of $420 after a $8.4 million withdrawal from the multi-sig treasury sparks liquidation cascade

CoinDesk

27 January 2022

ZachXBT publicly identifies Wonderland treasury manager 0xSifu as Michael Patryn (Omar Dhanani), convicted felon and QuadrigaCX co-founder; TIME, SPELL, and ICE all crash

CoinDesk

27 January 2022

Sestagalli publicly confirms he knew Sifu's identity before the disclosure and chose not to inform the community

CoinDesk

28 January 2022

Community votes 88% in favor of removing Sifu as Wonderland treasury manager

BeInCrypto

February 2022

Sestagalli announces Wonderland's closure despite community snapshot vote narrowly favoring continuation, overriding DAO governance outcome

BeInCrypto

18 June 2022

MIM stablecoin drops to $0.914 amid Terra/LUNA contagion; Autism Capital alleges $12 million in bad debt from UST lending market exposure

CoinTelegraph

8 November 2022

MIM depegs to approximately $0.952 as FTX collapses; FTT tokens comprising an estimated 33–35% of Abracadabra cauldron collateral become near-worthless

CoinDesk

November 2022

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 Forum

August 2023

SPELL records then-all-time low of approximately $0.0003498

CryptoNews SPELL Price Prediction

30 January 2024

Abracadabra exploited for $6.5 million via Cauldron V3/V4 rounding vulnerability on Ethereum; MIM crashes to $0.76

CoinDesk

25 March 2025

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

CoinDesk

4 October 2025

Abracadabra exploited for $1.8 million via cook() function logic error in deprecated Cauldron V4 contracts; funds laundered via Tornado Cash

Halborn

6 February 2026

SPELL records new all-time low of approximately $0.0001648

CryptoNews SPELL Price Prediction
Provenance & Audit Trail

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (1 event). 25 of 29 cited source URLs have an Internet Archive snapshot.

model: claude-sonnet-4-6

generated: 5/14/2026, 5:07:36 AM

last updated: 7/25/2026, 7:53:45 PM

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