Key Highlights:
- Hacker exploited GMX V1’s GLP pool, draining $42M
- Funds were swapped across multiple assets including USDC, ETH, FRAX, and wBTC
- GMX paused trading on V1 and offered a 10% white-hat bounty
- The platform’s token GMX dropped 18% after the news
Targeting the GLP Pool
Decentralized exchange GMX suffered a major exploit on Wednesday when a hacker drained $42 million from its V1 GLP pool on Arbitrum. GMX halted trading, minting, and redeeming for GLP on both Arbitrum and Avalanche to contain the breach. The attacker swapped assets across several tokens and now holds roughly $44 million in crypto. GMX has offered a 10% white-hat bounty and promised not to pursue legal action if the funds are returned within 48 hours.Impact and Market Reaction
The exploit affected only GMX V1 and did not impact GMX V2 or its native token’s liquidity. However, GMX’s token fell sharply from $14.42 to $11.78. The incident highlights ongoing vulnerabilities in DeFi protocols despite growing adoption.
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