MIM Stablecoin Suffers Flash Crash Amid $6.5 mn Exploit
Abracadabra.money (MIM), a stablecoin issued by decentralized platform Abracadabra.money, experienced a flash crash to $0.76 following a $6.5 million exploit. The attacker was funded from Tornado Cash, a sanctioned privacy protocol.
The attacker’s initial indications suggest a rounding error as the root cause. MIM developers announced that the Abracadabra DAO will buy back the stablecoin to preserve the peg, which was trading around $0.94 at press time.
The stablecoin also fluctuated in 2022 during the collapse of FTX, with a third of MIM’s collateral in FTT. The project faced scrutiny earlier this year after a proposal to transition power from the decentralized Abracadabra DAO to a centralized entity with lawyers and trustees.
(With inputs from Shikha Singh)
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