Crypto Hackers Drain $42 Million from Decentralized Perps Exchange GMX

A devastating cyber attack has struck the decentralized perpetuals exchange GMX, with blockchain security firm PeckShield revealing that hackers have successfully drained tens of millions of dollars from the platform.

The exploit is estimated to be worth around $42 million, with the majority of the stolen funds transferred to an unknown wallet on the Ethereum network via Arbitrum. Specifically, the GLP pool of GMX V1 on Arbitrum was drained of approximately $40 million, which was then sent to an unknown wallet.

GMX has confirmed the hack on its own X account, stating that the exploit occurred due to a vulnerability in its Arbitrum-based liquidity pool. The company has taken immediate action to mitigate the damage, disabling trading and minting/redeeming of GLP tokens on both Arbitrum and Avalanche to prevent further attack vectors.

According to PeckShield, the impact of the hack was limited to GMX V1, with the company's markets and liquidity pools, as well as the GMX token itself, reportedly uncompromised. However, the price of GMX has taken a significant hit, dipping from its weekly high of $14.44 earlier today down to $10.77 at time of writing, a decrease of over 22% during the last 24 hours.

The hack serves as a stark reminder of the importance of robust security measures in the cryptocurrency space. As GMX continues to investigate the matter, users are advised to exercise caution and do their due diligence before making any high-risk investments.

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