Abracadabra blames hacks for shutdown amid ‘looting’ claims

What happened

Embattled DeFi project Abracadabra has proposed “an orderly wind down,” blaming a string of security incidents which leave its stablecoin MIM with “no viable path back to parity.” The vote , set to close Wednesday evening, has received just two votes at the time of writing: 100 million SPELL votes for and just 0.5 million against.

According to the proposal, the one-time $6 billion protocol has 22 million of outstanding MIM supply against just $900,000 worth of “actionable backing,” leaving the supposedly dollar-pegged stablecoin worth just $0.04. However, Trading Strategy co-founder and DeFi commentator Mikko Ohtamaa calls the move “treasury looting.”

An X post points to a governance proposal in June and subsequent transfers as “questionable DAO activity.” While not a hack, the 2022 unmasking of Abracadabra-linked 0xSifu as a longtime fraudster and co-founder of QuadrigaCX, was a major hit to the project’s reputation and credibility.