$42M Stolen in GMX Hack, Hacker Offered Bounty
A sophisticated breach has struck the decentralized trading platform GMX, with over $42 million in crypto assets drained from its liquidity pool in what’s being described as one of the most damaging exploits of the year.
The incident, which unfolded on July 9, saw the attacker exploit GMX’s GLP pool and proceed to funnel funds across multiple networks in a calculated maneuver designed to obscure their trail. Blockchain investigators at PeckShield were quick to detect and trace the breach, reporting that nearly $10 million was moved to Ethereum shortly after the initial exploit.
The attacker employed an intricate strategy—first extracting USDC, then converting it into ETH, and eventually shifting a portion into DAI. Additional tokens, including FRAX, WBTC, and WETH, were also swept in the exploit. Complex token swaps and cross-chain transactions were used to fragment and conceal the loot.
In a last-ditch effort to negotiate, GMX reached out directly on-chain, offering the attacker a deal: return 90% of the funds and keep 10%—around $4.2 million—as a “white-hat” reward. The offer came with a 48-hour deadline and the promise of no legal action if the hacker complied.
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However, according to on-chain data from Arkham Intelligence, the address linked to the breach is still holding close to $44 million. So far, the funds remain untouched, and no response has been observed.
GMX, which operates primarily on the Arbitrum network and offers leveraged trading for top assets like Bitcoin and Ethereum, is expected to publish a full post-mortem analysis. In the meantime, the incident has reignited broader concerns about protocol-level security in decentralized finance.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
