GMX Crashes 25% After $42 Million DeFi Hack
GMX suffered a $42 million hack affecting its GLP liquidity provider, triggering a 15% drop in its token price. The team is investigating and offered a bounty for the return of funds.
GMX suffered a major hack today, as a wallet drained roughly $42 million from its GLP liquidity provider. It’s unclear how this happened, but the team offered the attackers a 10% bounty if they returned 90% of the funds.
Hackers have already bridged around $9.6 million from Arbitrum to Ethereum using Circle’s CCTP, leading to controversy. This is GMX’s second major breach this year, and its token fell over 25% in response.
How Was GMX Hacked?
The crypto community has suffered a lot of prominent hacks lately, and it doesn’t look like the trend is slowing down. Earlier this morning, security watchdogs noticed a suspicious transaction on GMX, which now seems to be a hack.
Through unknown methods, a Tornado Cash-funded wallet managed to drain around $42 million from GMX’s liquidity provider (GLP).
—
ALERT
GMX, the popular decentralized exchange, quickly responded to this major hack. Specifically, it disabled several user features related to trading, minting, and redeeming tokens.
The firm also encoded an on-chain message to the hackers, claiming that it would not pursue legal action if they returned 90% of the stolen funds within 48 hours. The other 10% would be a sort of bug bounty.
Additionally, GMX is investigating the exact cause of this hack, but the results are currently inconclusive. The firm claimed that the damage was isolated to the GMX V1 exchange, and that V2, markets, other liquidity pools, and the GMX token itself are working as normal.
Nonetheless, this token dropped more than 35% and has been falling since the hack took place:
GMX Price Chart. Source:
CoinGecko
Unfortunately, this is GMX’s second major hack in 2025. Earlier this March, the firm lost $13 million to an attack that also caused GMX to plummet 10%. If more serious breaches like this continue, it could damage the firm’s reputation.
ZachXBT, a prominent crypto sleuth, has already pointed out another weakness in the GMX hack. He claimed that $9.6 million in stolen funds sat on the USDC blockchain for nearly two hours before the attacker used CCTP to bridge the funds to Ethereum.
He personally attempted to flag the transaction and accused Circle of negligence in failing to freeze these assets.
Other than this successful ETH bridging, the other ~$33 million remains on Arbitrum. It’s unclear if the attackers will manage to launder the remaining proceeds from the GMX hack.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Three Giants Call for "Slowdown": AI Confidence Wavers, Oil Prices Break $100, Federal Reserve Rate Hike Imminent—U.S. Stocks May Face the Most Dangerous Week This Year
The Federal Reserve may raise interest rates, AI slowdown severely impacts chip stocks, Saudi pipeline attack drives up oil prices—this week, the US stock market faces a dual pressure test from inflation and risk appetite.
AI development slowdown combined with surging oil prices hit Japanese and Korean chip stocks first, SK Hynix falls more than 5%, SoftBank plunges 11%
AI giants have made a rare joint call to slow down the development of advanced models. The South Korean and Japanese stock markets have declined, with the Seoul Composite Index falling over 3% and the Nikkei 225 Index dropping more than 2%. SoftBank plunged 11% in a single day, while SK Hynix dropped over 5%. Meanwhile, Saudi Arabia has shut down oil pipelines, pushing Brent crude prices up to $107. Combined with the US CPI exceeding expectations, the probability of a Fed rate hike on Wednesday is now over 90%. The double whammy has led to a turbulent opening for Asian markets.
ASIC and optical interconnects drive high-speed growth! Bank of America strongly supports the soaring Marvell (MRVL.US), claiming there's still 55% upside potential
Bank of America maintains its $365 price target for Marvell, citing its focus on expanding revenue per AI system through custom AI accelerators (i.e., AI ASIC/XPU) and supporting optical interconnect chips, driven by massive demand for AI agents. Compared to the September 11 closing price of $236.10, this target implies a potential upside of approximately 54.6%.
Crypto prices
More
