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{"actor":"system:backfill","investigation_id":"e44dde56-bba7-433f-98f5-e5d42700a900","kind":"publish","page_slug":"abracadabra-spell","published_at":"2026-05-19T20:04:13.220Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Abracadabra Spell","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://www.gemini.com/cryptopedia/abracadabra-money-spell-token-abracadabra-crypto-lending"},{"credibility":3,"name":"","type":"other","url":"https://defillama.com/protocol/abracadabra"},{"credibility":3,"name":"","type":"other","url":"https://cryptoticker.io/en/rise-and-fall-spell-token/"}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://rekt.news/sifu-scandal"},{"credibility":3,"name":"","type":"other","url":"https://www.coindesk.com/tech/2022/01/27/how-did-a-former-quadriga-exec-end-up-running-a-defi-protocol-wonderland-founder-explains"},{"credibility":3,"name":"","type":"other","url":"https://www.theblock.co/post/132340/wonderland-votes-out-quadrigacx-co-founder-sifu-and-is-considering-shutting-down"},{"credibility":3,"name":"","type":"other","url":"https://decrypt.co/91968/how-wonderland-daniele-sestagalli-defi-avoided-shutting-down-after-michael-patryn-scandal"},{"credibility":3,"name":"","type":"other","url":"https://www.vice.com/en/article/crypto-co-founder-revealed-to-be-infamous-fraudster-investors-shaken/"},{"credibility":3,"name":"","type":"other","url":"http://www.quadrigainitiative.com/casestudy/wonderlandmoneysifuscandal.php"}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://pontem.network/posts/wonderland-time-and-mim-scandal-what-you-need-to-know"},{"credibility":3,"name":"","type":"other","url":"https://www.investing.com/analysis/can-terras-ust-stablecoin-hold-its-peg-200617570"}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://www.halborn.com/blog/post/explained-the-abracadabra-money-hack-march-2025"},{"credibility":3,"name":"","type":"other","url":"https://www.halborn.com/blog/post/explained-the-abracadabra-hack-october-2025"},{"credibility":3,"name":"","type":"other","url":"https://www.theblock.co/post/348059/hacker-steals-13-million-in-abracadabras-magic-internet-money-seemingly-using-a-flash-loan-attack"},{"credibility":3,"name":"","type":"other","url":"https://www.observers.com/6-5m-abracadabra-exploit-led-to-magic-internet-money-stablecoin-depeg/"},{"credibility":3,"name":"","type":"other","url":"https://cointelegraph.com/news/abracadabra-s-6-49m-loss-leads-to-mim-stablecoin-destabilization"},{"credibility":3,"name":"","type":"other","url":"https://threesigma.xyz/blog/exploit/mimspell-abracadabra-hack-breakdown"},{"credibility":3,"name":"","type":"other","url":"https://blockworks.com/news/rounding-exploit-magic-internet-money"}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://marketrealist.com/p/abracadabra-money-founder-net-worth/"},{"credibility":3,"name":"","type":"other","url":"https://cryptobriefing.com/who-is-daniele-sestagalli/"},{"credibility":3,"name":"","type":"other","url":"https://rekt.news/sifu-scandal"}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://www.cftc.gov/LawRegulation/EnforcementActions/index.htm"}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"","type":"other","url":"https://www.theblock.co/post/373453/abracadabra-loses-1-8-million-in-protocols-third-major-defi-hack-since-2024"},{"credibility":3,"name":"","type":"other","url":"https://www.halborn.com/blog/post/explained-the-abracadabra-money-hack-march-2025"},{"credibility":3,"name":"","type":"other","url":"https://www.investingcube.com/spell-token-price-prediction-abracadabras-fall-from-grace-cryptocurrencies/"}]}],"sources_used":[],"summary":"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.","timeline":[{"date":"2021-11-01","event":"Abracadabra.money launches; SPELL token reaches all-time high of approximately $0.035.","source":""},{"date":"2022-01-15","event":"Wonderland (Frog Nation) records near all-time high TVL of approximately $776 million.","source":""},{"date":"2022-01-27","event":"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.","source":""},{"date":"2022-01-29","event":"Wonderland DAO votes 88% in favor of removing Sifu as treasury manager; a second vote elects to continue protocol operations rather than unwind.","source":""},{"date":"2022-01-27","event":"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.","source":""},{"date":"2022-05-01","event":"Terra/LUNA ecosystem collapses. Abracadabra's Degenbox strategy — which created recursive MIM-UST leverage loops — suffers significant contagion losses. MIM experiences depeg pressure.","source":""},{"date":"2024-01-30","event":"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.","source":""},{"date":"2025-03-01","event":"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.","source":""},{"date":"2025-10-04","event":"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.","source":""}]},"v":1}