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{"actor":"system:backfill","investigation_id":"4c71cf79-10b4-4353-9d14-1411463bc12e","kind":"publish","page_slug":"abstract","published_at":"2026-10-06T22:37:25.676Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Abstract","sections":[{"content":"Abstract is an Ethereum Layer 2 built with Matter Labs' ZK Stack and EigenDA. Igloo Inc., the parent company of Pudgy Penguins, developed it. In July 2024, The Block reported that Igloo raised $11 million in a round led by Founders Fund, with participation from Fenbushi Capital, 1kx, Everest Ventures Group and Selini Capital. The funding was to set up Cube Labs to contribute to Abstract's development. The same report named Michael Lee (CEO of Cube Labs, formerly of Matter Labs), Luca Netz (CEO of Pudgy Penguins and Igloo), Lorenzo Melendez (President of Pudgy Penguins and Igloo) and Cygaar (CTO of Cube Labs) as key figures. At that time the project employed about 30 people and was headquartered in Miami. Decrypt describes Abstract as incubated under the not-for-profit Abstract Foundation. Identifiable, venture-backed leadership is a mitigating factor for counterparty risk.","heading":"Overview, Backing and Team","severity":"low","sources":[{"credibility":2,"name":"The Block: Peter Thiel's Founders Fund leads $11 million round for Pudgy Penguins' parent as it builds new Layer 2 blockchain","type":"news_article","url":"https://www.theblock.co/post/306955/peter-thiel-founders-fund-pudgy-penguins-igloo-funding-abstract"},{"credibility":2,"name":"Decrypt: What is Abstract, the Ethereum Layer 2 from Pudgy Penguins","type":"news_article","url":"https://decrypt.co/296265/what-is-abstract-ethereum-layer-2-pudgy-penguins"}]},{"content":"The Block reported on January 27, 2025 that Abstract had gone live on mainnet for public use. The network uses zero-knowledge rollups and offers native account abstraction with email and social login. It launched with 'The Portal', through which users create wallets and access community-built applications (over 100, according to the report). The article states that Igloo acquired Frame, a Layer 2 project for creators, in June 2024 to integrate its technology into Abstract.","heading":"Mainnet Launch","severity":"low","sources":[{"credibility":2,"name":"The Block: Pudgy Penguins-linked Ethereum Layer 2 Abstract launches on mainnet","type":"news_article","url":"https://theblock.co/post/337120/pudgy-penguins-linked-ethereum-layer-2-abstract-launches-on-mainnet"}]},{"content":"On February 18, 2025, The Block reported that Abstract was investigating user reports of drained wallets, apparently linked to Cardex, an onchain fantasy trading card game that had launched on Abstract on February 11. Users alleged losses from hundreds of dollars to over $100,000 in ether, and users reportedly demanded refunds in Abstract's Discord and Cardex's Telegram, with some alleging a rugpull. An Abstract representative said the issue appeared isolated to one app and was not a network-wide Abstract Global Wallet (AGW) issue. On February 19, 2025, The Block reported Abstract's post-mortem. It said about $400,000 in ether was compromised across roughly 9,000 wallets. Abstract contributor Cygaar attributed it to a compromised session signer wallet shared by all Cardex users, facilitated by a key leaked in Cardex's frontend code. ERC-20 tokens and NFTs were reportedly not at risk. Abstract told users to revoke active sessions and avoid the app, and said projects using session keys in the Abstract portal were expected to be audited. Abstract characterized the issue as app-level negligence in session-key management rather than a flaw in the core network or AGW. Other outlets reported higher loss estimates (for example over $470,000), so the total is not settled. This analysis does not independently verify whether any victims were compensated.","heading":"Cardex Session-Key Exploit (February 2025)","severity":"medium","sources":[{"credibility":2,"name":"The Block: Abstract Chain investigating as some users report wallet drains, apparently related to Cardex","type":"news_article","url":"https://www.theblock.co/news/regulation/2025-02-18-abstract-chain-wallet-drains-cardex-341472"},{"credibility":2,"name":"The Block: Cardex exploit compromised $400,000 worth of ether across 9,000 wallets: Abstract","type":"news_article","url":"https://www.theblock.co/post/341694/cardex-exploit-compromised-400000-worth-of-ether-across-9000-wallets-abstract"},{"credibility":2,"name":"Cointelegraph: Abstract L2 wallet drain, Cardex security issue","type":"news_article","url":"https://cointelegraph.com/news/abstract-l2-wallet-drain-cardex-security-issue"}]},{"content":"The sources reviewed did not confirm an official Abstract network token or airdrop. In the July 2024 funding report, Michael Lee declined to comment on whether Abstract would launch its own token. Third-party airdrop-tracking sites and blogs have published speculative or conflicting claims about an 'ABS' or 'ABX' token. These claims could not be verified against an official source and are excluded here. Users should treat any token or airdrop that claims to be official, and is not announced through Abstract's verified channels, as potentially fraudulent. No SEC, CFTC, DOJ or other regulatory actions, and no lawsuits, against Abstract, Abstract Foundation or Igloo concerning Abstract were found in the searches performed. This is an absence of evidence, not a clearance. Some search results referenced an alleged hack of Abstract's official X account promoting a fake token, but the pages could not be retrieved, so the claim is not included.","heading":"Token Status and Regulatory Record","severity":"low","sources":[{"credibility":2,"name":"The Block: Peter Thiel's Founders Fund leads $11 million round for Pudgy Penguins' parent","type":"news_article","url":"https://www.theblock.co/post/306955/peter-thiel-founders-fund-pudgy-penguins-igloo-funding-abstract"}]}],"sources_used":[{"credibility":2,"name":"The Block: Peter Thiel's Founders Fund leads $11 million round for Pudgy Penguins' parent","type":"news_article","url":"https://www.theblock.co/post/306955/peter-thiel-founders-fund-pudgy-penguins-igloo-funding-abstract"},{"credibility":2,"name":"The Block: Pudgy Penguins-linked Ethereum Layer 2 Abstract launches on mainnet","type":"news_article","url":"https://theblock.co/post/337120/pudgy-penguins-linked-ethereum-layer-2-abstract-launches-on-mainnet"},{"credibility":2,"name":"The Block: Abstract Chain investigating wallet drains related to Cardex","type":"news_article","url":"https://www.theblock.co/news/regulation/2025-02-18-abstract-chain-wallet-drains-cardex-341472"},{"credibility":2,"name":"The Block: Cardex exploit compromised $400,000 worth of ether across 9,000 wallets","type":"news_article","url":"https://www.theblock.co/post/341694/cardex-exploit-compromised-400000-worth-of-ether-across-9000-wallets-abstract"},{"credibility":2,"name":"Cointelegraph: Abstract L2 wallet drain, Cardex security issue","type":"news_article","url":"https://cointelegraph.com/news/abstract-l2-wallet-drain-cardex-security-issue"},{"credibility":2,"name":"Decrypt: What is Abstract, the Ethereum Layer 2 from Pudgy Penguins","type":"news_article","url":"https://decrypt.co/296265/what-is-abstract-ethereum-layer-2-pudgy-penguins"}],"summary":"Abstract is a consumer-focused Ethereum Layer 2 (ZK rollup) blockchain developed by Igloo Inc., the parent company of Pudgy Penguins, and incubated under the not-for-profit Abstract Foundation. It raised $11 million led by Founders Fund and launched on mainnet in January 2025. The main documented incident is the February 2025 Cardex session-key exploit, which Abstract attributed to a third-party app rather than to the network or Abstract Global Wallet. No regulatory actions or lawsuits against Abstract were found, and this page does not cover other projects that share the name.","timeline":[{"date":"2024-06","event":"Igloo acquired Frame, a Layer 2 project for creators, to integrate its technology into Abstract.","source":"The Block","source_url":"https://theblock.co/post/337120/pudgy-penguins-linked-ethereum-layer-2-abstract-launches-on-mainnet"},{"date":"2024-07-23","date_evidence":"Publication Date: July 23, 2024","event":"Igloo announced an $11 million round led by Founders Fund to build Abstract via Cube Labs; Abstract was then in testnet.","source":"The Block","source_url":"https://www.theblock.co/post/306955/peter-thiel-founders-fund-pudgy-penguins-igloo-funding-abstract"},{"date":"2025-01-27","date_evidence":"Publication Date: January 27, 2025","event":"Abstract mainnet reported live for public use.","source":"The Block","source_url":"https://theblock.co/post/337120/pudgy-penguins-linked-ethereum-layer-2-abstract-launches-on-mainnet"},{"date":"2025-02","date_evidence":"Cardex, an onchain fantasy trading card game that launched on Abstract on February 11","date_original":"2025-02-11","event":"Cardex launched on Abstract.","source":"The Block","source_url":"https://www.theblock.co/news/regulation/2025-02-18-abstract-chain-wallet-drains-cardex-341472"},{"date":"2025-02-18","date_evidence":"Publication Date: February 18, 2025","event":"Abstract said it was investigating user wallet drains apparently tied to Cardex.","source":"The Block","source_url":"https://www.theblock.co/news/regulation/2025-02-18-abstract-chain-wallet-drains-cardex-341472"},{"date":"2025-02-19","date_evidence":"Publication Date: February 19, 2025","event":"Abstract post-mortem attributed the Cardex exploit (about $400,000 across roughly 9,000 wallets) to a leaked session key in Cardex's frontend; AGW and core network reportedly unaffected.","source":"The Block","source_url":"https://www.theblock.co/post/341694/cardex-exploit-compromised-400000-worth-of-ether-across-9000-wallets-abstract"}]},"v":1}