- Synnax Labs, a fork of Abracadabra, claimed the audit lacked depth and failed to find several flaws.
- After the refund, PeckShield deleted all related audit documentation, raising concerns about transparency.
- Synnax Labs paused and patched the vulnerability four days before Abracadabra was exploited.
- Abracadabra has experienced losses of over $21 million to DeFi hacks since 2024.
PeckShield Inc. has issued a refund to Synnax Labs after a security audit failed to identify the same bug involved in a $1.7 million attack on the decentralized finance (DeFi) lending platform Abracadabra. The audit, commissioned by Synnax Labs—a project based on Abracadabra’s code—was later withdrawn and all related records were deleted by PeckShield.
Synnax Labs reported that it requested the refund after discovering vulnerabilities that were not detected by the security firm’s assessment. According to the company, the audit _”lacked sufficient depth.”_ Following the refund, PeckShield took down the corresponding audit report and communications, which Synnax Labs described as _”an unprofessional move that undermines transparency.”_
The issue came to public attention after blockchain researcher Weilin Li questioned Synnax Labs’ involvement with the Abracadabra hack on October 4. Li pointed out that Synnax Labs was the only fork of Abracadabra’s Magic Internet Money (MIM) with significant funds that was still vulnerable to the same attack. Li stated, _”I have no opinion or comment on this event. I am just listing some facts.”_
Synnax Labs responded by confirming that their contracts had been _”paused and patched proactively four days before Abracadabra’s exploit,”_ and provided further details about the audit situation. The vulnerability in question involved a flaw in Abracadabra’s cook function, which allowed Hackers to bypass key checks and siphon off $1.7 million. Stolen funds were sent to Tornado Cash, a privacy protocol, before Abracadabra repurchased its tokens and recovered.
This latest exploit follows other major breaches. In January 2024, Abracadabra lost $6.5 million due to a bug in its smart contract code. More than a year later, another hack resulted in a $13 million loss through an exploit of its collateral accounting method, bringing total losses from significant hacks to over $21 million.
Protos has reached out to both Synnax Labs and PeckShield Inc. for further comment and updates will follow if responses are received.
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