Users report six-figure losses in Cardex exploit on Abstract Chain

Abstract Chain said a recent exploit was an isolated incident tied to Cardex, a blockchain fantasy game.

Abstract Chain, an Ethereum layer-2 network built by Igloo Inc., the same entity behind Pudgy Penguins, confirmed an inquiry into wallet drain reports shared by users on Tuesday, Feb. 18.

Several users flooded Abstract’s Discord server with complaints, reporting lost funds and demanding refunds. Some individuals claimed to have lost over $100,000 in Ether (ETH). Tensions rose due to a delay in Abstract’s response to the matter.

However, the team said an investigation was ongoing and assured users that the issue was isolated to the on-chain fantasy game Cardex. 0xBeans, an Abstract team member, noted that the core Abstract Global Wallet was unaffected and said the issue stemmed from Cardex “mishandling” important wallet credentials. The individual also promised updates once findings became available.

“This issue seems to be isolated to an app (seems to be Cardex, please do not interact for the time being). We are working to get to the bottom of it,” OxBeans tweeted on X.

Cardex launched on the L2 chain last week, allowing players to interact with digital trading cards on-chain. Following the incident, users accused Cardex of orchestrating a rug pull on the project’s official Telegram channel. 0xBeans advised users to avoid interacting with Cardex until further notice and withdraw assets pending a resolution.

Released by Pudgy Penguins’ parent company Igloo Inc. in January, Abstract’s team built the L2 using ZKsync’s zero-knowledge-powered developer toolkit. Investors, including Peter Thiel’s Founders Fund, backed the project with a total of $11 million last July.