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On-chain data has confirmed that the attacker responsible for the Magic Internet Money (MIM) hack in March 2025 recently funneled $7.5 million worth of stolen funds into the decentralized crypto mixer Tornado Cash. This move highlights the ongoing challenges in tracking stolen cryptocurrency through blockchain networks.

Details of the Fund Transfer

According to blockchain security analysis, the attacker moved 3,001 ETH—equivalent to approximately $7.57 million—from a wallet address starting with “0x51baB” into Tornado Cash. This transaction represents more than half of the total $13 million stolen during the attack on Abracadabra Finance’s stablecoin, MIM.

“The MIM_Spell exploiter has just sent 3,001 ETH (~$7.57M) to Tornado Cash from 0x51baB,” reported CertiK, a blockchain security firm.

Data visualizations from CertiK revealed that the stolen funds were moved through a chain of four Ethereum-based addresses before reaching the mixer platform. Initially, 6,261 ETH—the total stolen in the exploit—was transferred to an intermediary wallet. Subsequently, 3,001 ETH was routed through two additional wallets before being deposited into Tornado Cash, a well-known tool for obscuring transaction trails.

Understanding the MIM Hack

The MIM hack occurred on March 25, 2025, and targeted the gmCauldron smart contracts of Abracadabra Finance. This exploit leveraged vulnerabilities in the integration between the decentralized exchange GMX and Abracadabra’s lending contracts. The attacker exploited the system to borrow funds without proper repayment, enabling them to siphon off a total of 6,261.13 ETH, valued at nearly $13 million at the time.

CertiK’s analysis revealed that the vulnerability stemmed from a flaw in the liquidation process. Specifically, the system failed to overwrite collateral records in the RouterOrder, allowing the attacker to repeatedly borrow additional funds after liquidation.

“This was due to the liquidation process not overwriting records in RouterOrder that counted as collateral, allowing the exploiter to falsely borrow additional funds after liquidation,” explained CertiK in its post-attack analysis.

Abracadabra’s Response to the Hack

Following the attack, Abracadabra Finance took swift action to address the losses. The protocol announced that it had successfully repurchased 50% of the stolen funds, ensuring that user funds were not directly impacted. The team also emphasized its commitment to recovering the remaining stolen assets and improving the security of its platform.

Despite these efforts, tracking stolen funds becomes increasingly challenging once they are funneled through crypto mixers like Tornado Cash. These platforms are designed to obscure the origins and destinations of transactions, making it difficult for authorities and blockchain analysts to trace stolen assets.

Key Takeaways for Investors

For cryptocurrency investors, incidents like the MIM hack highlight the importance of understanding the risks associated with decentralized finance (DeFi) platforms. Here are some key tips to protect your investments:

  • Research the platform: Before investing, thoroughly investigate the security measures and protocols of the DeFi platform.
  • Stay informed: Keep up to date with the latest security news and vulnerabilities in the cryptocurrency space.
  • Diversify your portfolio: Avoid putting all your funds into one platform or asset to minimize risk.
  • Use hardware wallets: Store your crypto assets in secure, offline wallets to reduce exposure to online threats.

As the cryptocurrency landscape continues to evolve, staying vigilant and informed is crucial for safeguarding your investments.

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