The GMX V1 platform’s GLP liquidity pool on the Arbitrum network has suffered a security breach resulting in approximately $40 million in losses. An unidentified wallet executed the exploit, prompting immediate protective measures from the GMX team.
In response to the incident, trading activities on GMX V1 across both the Arbitrum and Avalanche networks have been temporarily suspended. Additionally, all GLP minting and redemption operations were halted to prevent further exposure and safeguard user assets during the investigation.
GMX has confirmed the exploit was isolated to the V1 GLP pool on Arbitrum, with no impact on the separate GMX V2 platform. V2’s markets and liquidity pools continue to operate normally, maintaining full functionality throughout the incident.