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Decentralized Exchange GMX Exploited for $42M, Offers Hacker 10% White Hat Bounty

ARBITRUM NETWORK, JUL 9 – A vulnerability in GMX V1's code enabled an attacker to drain $40 million, prompting a trading halt and a 10% bounty offer for fund recovery, industry experts said.

  • On July 11, 2025, the decentralized exchange GMX experienced a significant security breach that resulted in the loss of approximately $42 million from its GLP asset pools on the Arbitrum and Avalanche networks.
  • The breach exploited a re-entrancy vulnerability allowing abnormal minting of GLP tokens, while investigation into the exact cause remains inconclusive.
  • GMX halted trading and minting on its V1 platform, disabled related user features, and claimed the damage was isolated, with V2 and other components unaffected.
  • The stolen assets include over $10 million in frax dollar, $9.6 million in wBTC bridged to Ethereum using Circle's CCTP, and $5 million in DAI stablecoin, with the native GMX token dropping over 35%.
  • GMX responded to the hack by offering ethical hackers a reward amounting to 10% of the recovered funds if 90% of the stolen assets were returned, and issued an on-chain assurance that no legal actions would be taken against the attacker, as industry-wide losses surpassed $2.5 billion.
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The hacker took away about $40 million taking advantage of a vulnerability, but the GMX team managed to agree with the responsible to return the funds in exchange for a reward. *** The attacker who stole more than $40 million from GMX has begun to return the funds. He accepted in exchange to receive a reward for $5 million offered by the protocol. Transfers include ETH, FRAX and other assets stolen during the exploit. The incident is considered …

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Crypto Briefing broke the news in on Wednesday, July 9, 2025.
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