Abracadabra Shuts Down Amid Security Incident Fallout

Abracadabra, a DeFi project that has faced numerous security incidents and scandals, has proposed an orderly wind-down of its operations. The decision was made after a vote among SPELL holders, which saw over 5 billion votes in favor of the proposal.

The project's stablecoin, Magic Internet Money (MIM), has been depegged since June, and Abracadabra claims there is no viable path back to parity due to a series of security incidents. The protocol's treasury has 22 million outstanding MIM supply against just $900,000 worth of actionable backing.

Mikko Ohtamaa, co-founder of Trading Strategy, calls the move 'treasury looting,' pointing out sizable treasury sales of MIM on June 8 and 11 on Curve. The proposal does not address these funds or take them into account for redemption calculations.