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{"actor":"system:backfill","investigation_id":"04ced6c0-f931-4b8d-94ff-745d70a453a2","kind":"publish","page_slug":"abracadabra-money","published_at":"2026-05-30T19:10:50.529Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Abracadabra Money","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://wiki.rugdoc.io/docs/introduction-to-abracadabra-and-mim/","type":"other","url":""},{"credibility":3,"name":"https://www.gemini.com/cryptopedia/magic-internet-money-mim-crypto-abracadabra-money","type":"other","url":""},{"credibility":3,"name":"https://defillama.com/protocol/abracadabra","type":"other","url":""},{"credibility":3,"name":"https://marketrealist.com/p/abracadabra-money-founder-net-worth/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.theblock.co/post/275072/abracadabra-finance-drained-of-estimated-6-4-million-in-apparent-security-attack","type":"other","url":""},{"credibility":3,"name":"https://cointelegraph.com/news/abracadabra-s-6-49m-loss-leads-to-mim-stablecoin-destabilization","type":"other","url":""},{"credibility":3,"name":"https://extropy-io.medium.com/breaking-down-the-6-5m-abracadabra-money-hack-a-detailed-analysis-of-the-cauldron-v4-exploit-44100da10896","type":"other","url":""},{"credibility":3,"name":"https://medium.com/neptune-mutual/how-was-abracadabra-money-exploited-77c6b0701819","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2024/01/30/mim-stablecoin-suffers-flash-crash-amid-65m-exploit","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.theblock.co/post/348059/hacker-steals-13-million-in-abracadabras-magic-internet-money-seemingly-using-a-flash-loan-attack","type":"other","url":""},{"credibility":3,"name":"https://www.halborn.com/blog/post/explained-the-abracadabra-money-hack-march-2025","type":"other","url":""},{"credibility":3,"name":"https://finance.yahoo.com/news/13-million-stolen-abracadabra-money-005501164.html","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.halborn.com/blog/post/explained-the-abracadabra-hack-october-2025","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/373453/abracadabra-loses-1-8-million-in-protocols-third-major-defi-hack-since-2024","type":"other","url":""},{"credibility":3,"name":"https://threesigma.xyz/blog/exploit/mimspell-abracadabra-hack-breakdown","type":"other","url":""},{"credibility":3,"name":"https://crypto.news/abracadabra-1-8m-hack-repeats-earlier-fork-flaw/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.coindesk.com/tech/2022/01/27/how-did-a-former-quadriga-exec-end-up-running-a-defi-protocol-wonderland-founder-explains","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/markets/2022/01/27/wonderland-rattled-after-cofounder-tied-to-alleged-quadrigacx-190m-exit-scam","type":"other","url":""},{"credibility":3,"name":"https://pontem.network/posts/wonderland-time-and-mim-scandal-what-you-need-to-know","type":"other","url":""},{"credibility":3,"name":"https://rekt.news/sifu-scandal","type":"other","url":""},{"credibility":3,"name":"https://www.vice.com/en/article/crypto-co-founder-revealed-to-be-infamous-fraudster-investors-shaken/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://thedefiant.io/maximum-yield-for-stablecoins-degenbox-by-abracadabra-money","type":"other","url":""},{"credibility":3,"name":"https://finance.yahoo.com/news/abracadabra-offer-supercharged-stablecoin-yields-182722381.html","type":"other","url":""},{"credibility":3,"name":"https://www.techdreams.org/crypto-currency/abracadabra-impact-on-ust/12009-20211222","type":"other","url":""},{"credibility":3,"name":"https://crypto.uk.com/index.php/2022/06/19/defi-protocol-abracadabras-stablecoin-mim-briefly-slides-to-0-91-during-the-crypto-market-rout/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.coindesk.com/markets/2022/11/08/abracadabras-mim-stablecoin-briefly-lost-dollar-peg-as-ftxs-ftt-token-tanked","type":"other","url":""},{"credibility":3,"name":"https://finance.yahoo.com/news/abracadabras-mim-stablecoin-briefly-125435169.html","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.coindesk.com/business/2023/07/05/centralization-comes-to-defi-as-group-behind-mim-spell-tokens-mull-legal-shakeup","type":"other","url":""},{"credibility":3,"name":"https://www.sec.gov/newsroom/press-releases/2024-105","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://cointelegraph.com/news/abracadabra-s-6-49m-loss-leads-to-mim-stablecoin-destabilization","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2024/01/30/mim-stablecoin-suffers-flash-crash-amid-65m-exploit","type":"other","url":""},{"credibility":3,"name":"https://crypto.uk.com/index.php/2022/06/19/defi-protocol-abracadabras-stablecoin-mim-briefly-slides-to-0-91-during-the-crypto-market-rout/","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/markets/2022/11/08/abracadabras-mim-stablecoin-briefly-lost-dollar-peg-as-ftxs-ftt-token-tanked","type":"other","url":""}]}],"sources_used":[],"summary":"Abracadabra Money is a multi-chain DeFi lending protocol founded in 2021 that allows users to mint Magic Internet Money (MIM), a USD-pegged stablecoin, using interest-bearing tokens as collateral. The protocol has suffered four significant security incidents between 2022 and 2025, losing over $21 million in aggregate, and its MIM stablecoin has lost its dollar peg on multiple occasions. The protocol is also linked to the Wonderland/Sifu scandal of early 2022, which caused severe reputational and financial contagion across its interconnected 'Frog Nation' ecosystem.","timeline":[{"date":"2021-05-01","event":"Abracadabra Money protocol launches, enabling users to borrow MIM stablecoin against interest-bearing collateral.","source":""},{"date":"2021-11-01","event":"Protocol reaches all-time high TVL of over $5 billion during the DeFi bull market peak.","source":""},{"date":"2021-12-01","event":"Degenbox UST strategy launches, allowing recursive leveraged yield farming on Terra's Anchor Protocol at advertised APYs up to 100%.","source":""},{"date":"2022-01-27","event":"ZachXBT reveals Wonderland CFO 'Sifu' is Michael Patryn, co-founder of the QuadrigaCX exchange fraud and convicted felon. Sestagalli admits prior knowledge. SPELL, TIME, and ICE tokens crash 30%+. MIM depegs under selling pressure.","source":""},{"date":"2022-01-29","event":"Wonderland DAO votes to remove Sifu as treasury manager. A second DAO vote rejects winding down the protocol, overriding Sestagalli's preference.","source":""},{"date":"2022-05-01","event":"Terra/LUNA ecosystem collapses. Abracadabra's Degenbox UST positions are force-unwound, contributing to contagion. Protocol accumulates approximately $12 million in bad debt.","source":""},{"date":"2022-06-19","event":"MIM stablecoin falls to all-time low of approximately $0.914 amid Terra contagion bad debt recognition.","source":""},{"date":"2022-11-08","event":"FTX collapses; FTT, which represented ~33% of MIM collateral (~$120M TVL), crashes. MIM briefly depegs to ~$0.95. Protocol discloses 12.5 million MIM in bad debt and begins 20-month repayment plan.","source":""},{"date":"2023-07-05","event":"Abracadabra core team proposes restructuring the DAO into a centralized legal entity, citing regulatory scrutiny as a key motivating factor.","source":""},{"date":"2024-01-30","event":"Abracadabra suffers $6.4–6.5 million exploit via precision loss vulnerability in Cauldron V3/V4 contracts. MIM flash-crashes to $0.76. DAO announces buyback-and-burn response.","source":""},{"date":"2025-03-25","event":"Abracadabra suffers $13 million flash loan exploit targeting GMX-integrated cauldrons on Arbitrum. Protocol offers 20% recovery bounty. Stolen funds bridged to Ethereum.","source":""},{"date":"2025-10-04","event":"Abracadabra suffers third major exploit in under two years: $1.8 million stolen via business logic error in deprecated Cauldron V4 cook() function. Funds laundered via Tornado Cash. Protocol buys back 1.79M MIM to stabilize peg.","source":""}]},"v":1}