The hacker behind the Abracadabra Money exploit has transferred 1,200 ETH (worth $1.8 million) of the stolen funds to Tornado Cash, a decentralized cryptocurrency mixer.
This move was highlighted by Certik Alerts and is an attempt to make it harder for the authorities to track and recover these funds. This is also a typical example of cat-and-mouse game between the hackers and authorities in the crypto space.
Background on Abracadabra Money Exploit
In March 2025, hackers attacked Abracadabra platform and stole around $13 million worth of Ethereum (ETH). The hackers targeted the platform’s cauldrons which use GMX liquidity tokens. The hackers then manipulated the system to borrow funds without having to pay them back.
Although GMX later confirmed that their own contracts were safe, the incident still highlights the ongoing security risks in DeFi platforms.
The Abracadabra platform had also offered a bounty to the hacker so that at least a small amount of the stolen fund could be recovered.
The platform has repaid over 50% of the stolen funds using its DAO treasury, covering 6.5 million MIM and is also collaborating with Chainalysis to track stolen funds and working with centralized exchange to avoid further illegal transactions.
Tornado Cash and its Role
Tornado Cash is a platform tool that enhances privacy. The platform allows users to deposit cryptocurrencies into a shared pool, and dissociates the currencies from the original senders. Users can then withdraw funds using a unique security key, which makes traceability impossible.
However, this privacy platform has raised many concerns that activities such as money laundering or any illegal activity can be easily executed using this platform.
Roman Storm, the founder of Tornado Cash and Alexey Pertsev, developer of Tornado Cash, are facing criminal trial in July 2025 for development of Tornado Cash’s smart contract and protocols. Both of them have filed motions to dismiss charges but these have been rejected by the court as of now.
This transfer of 1,200 ETH incident highlights need for more efficient security measures. The situation also sheds light on how effective regulatory frameworks also become important to prevent such exploits in the cryptocurrency space.
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