GMX Crypto Protocol paused trading on GMX V1 after a liquidity pool got wrecked by an exploit on Wednesday, with $40 million swiped and sent to an unknown wallet.
The GMX V1 is the first version of the GMX perpetual exchange on the Arbitrum network. The hacked pool gives liquidity providers a mix of digital assets like Bitcoin, ETH, and stablecoins, according to the GMX team.
They also announced a temporary freeze on minting and redeeming GLP tokens on both Arbitrum and Avalanche to prevent further damage from the hack.
🟥@GMX_IO ( $GMX ) exchange was hacked
The exploiter’s address holds $42M in assets@arkham
0xDF3340A436c27655bA62F8281565C9925C3a5221 pic.twitter.com/6bTYdaJ9bY— Daz (@Daz_0x) July 9, 2025
GMX Crypto Protocol offered the hacker a 10% bounty to return the funds.
The GMX team dropped an on-chain message offering the hacker a 10% “white-hat” bounty if they return the stolen funds. The message stated that if the hacker cooperates within 48 hours, the platform won’t pursue them legally.
The hacker moved the stolen cash in phases. First, they drained the pool in USDC, then swapped it into ETH, and converted some to DAI. They also pulled out a bunch of FRAX, wrapped Bitcoin (WBTC), wrapped Ether (WETH), and a bunch of other tokens.
Arkham Intelligence’s blockchain data shows the wallet tied to the exploit is holding almost $22 million right now. No funds have been sent back as of now.
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GMX Coin Suffered More Than 20% Drop In Value
(Source)
Upon the news, the coin has dropped more than 20% in value. Going from $14 to under $11, which puts it under 111M market cap. GMX exchange, which started in 2021 and mainly runs on the Arbitrum network, lets users trade assets like BTC, ETH, and AVAX with leverage.
After the hack, users and the DeFi crowd are waiting for a full breakdown from the team and are keeping an eye on any new movements from the hacker.
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Key Takeaways
- GMX Crypto Protocol paused trading after a $42M exploit, offering a 10% bounty for returned funds.
- GMX coin dropped over 20% in value following the hack, now trading at $11
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