Crypto hackers lift $42m from GMX’s Arbitrum liquidity pool in broad daylight

Key Points

1. GMX confirmed its V1 GLP pool on Arbitrum was exploited, resulting in a loss of over $40 million in various assets.

2. The exploit involved manipulating the protocol's leverage mechanism to mint excessive GLP tokens without proper collateral.

3. Audits by top firms failed to prevent the breach, despite proactive safeguards like a $5 million bug bounty program.

4. The attack raises questions about the reliability of audit-driven security in DeFi, especially for mature protocols like GMX.

5. GMX clarified that the breach was isolated to V1 and did not affect GMX V2, its token, or other associated markets.