GMX Faces Possible $40 Million Exploit on V1 Platform, Offers 10% White-Hat Bounty for Fund Return

Key Points

1. GMX announced a critical vulnerability in its V1 platform on July 9, 2025, leading to a $40 million loss from a re-entrancy attack on the GLP token minting process.

2. The attacker exploited a flaw in the GLP token's short average price calculation, draining underlying liquidity from the platform.

3. GMX responded by disabling V1 operations and offering a 10% white-hat bounty ($4 million) to the attacker to recover the stolen assets.

4. The attack highlights persistent vulnerabilities in decentralized finance platforms, particularly those involving complex token minting and liquidity mechanisms.

5. The incident draws parallels to the 2016 DAO hack, emphasizing the ongoing risks of smart contract exploits in DeFi ecosystems.