In a shocking turn of events, the decentralized exchange GMX has fallen victim to a massive exploit, resulting in the loss of approximately $42 million in digital assets. The attack, which occurred on July 9, 2025, targeted the platform's GLP liquidity pool on the Arbitrum network, specifically impacting the GMX V1 version of the perpetual exchange.
The hacker reportedly deployed a malicious smart contract to manipulate the system, minting unauthorized tokens and draining significant amounts of Bitcoin, Ethereum, and stablecoins like USDC and DAI. A portion of the stolen funds has already been bridged from Arbitrum to the Ethereum network, raising concerns about the traceability of the assets.
In response to the breach, GMX has halted trading and token minting on its V1 platform to prevent further losses. The team is conducting an emergency audit to assess the full scope of the vulnerability and strengthen security measures. Meanwhile, the incident has triggered a sharp decline in the GMX token price, with reports of a drop of over 15% in value.
In a bid to recover the stolen funds, GMX has offered the attacker a white-hat bounty of 10%, equating to roughly $4.2 million, if the assets are returned. This strategy is often employed in the crypto space to incentivize hackers to return stolen funds without further legal or technical escalation.
The exploit has reignited discussions about the security of decentralized finance (DeFi) protocols, with experts pointing to the inherent risks of unaudited or outdated smart contracts. As DeFi continues to grow, incidents like this underscore the urgent need for robust security practices and regular audits to protect user funds.
GMX users and the broader crypto community are urged to stay vigilant and monitor official announcements from the platform for updates on the situation. The long-term impact of this exploit on GMX’s reputation and market position remains to be seen, as trust is a critical component in the DeFi ecosystem.
Maria Lourdes
