Bitprismia

GMX Hacker Strikes White-Hat Deal: $42M Heist Turns $3M Profit After $5M Bounty Offer

2025-07-11 11:06:52

Main Idea

A hacker exploited GMX's DeFi protocol, stealing $42M but later agreed to return the funds in exchange for a $5M white-hat bounty, while profiting $3M from ETH price appreciation.

Key Points

1. GMX suffered a $42M exploit due to a re-entrancy vulnerability in its V1 contracts.

2. The hacker bridged stolen funds from Arbitrum to Ethereum and later agreed to return the assets for a $5M bounty.

3. The hacker converted $32M of the stolen funds into 11,700 ETH, which appreciated to $35M, netting a $3M profit.

4. GMX paused trading on Avalanche and disabled GLP minting/redemption on Arbitrum to address the exploit.

5. GMX warned V1 forks to implement security fixes and audits to prevent similar vulnerabilities.

Description

On July 9, decentralized exchange GMX became the latest DeFi protocol to suffer a major exploit, with over $42 million in digital assets reportedly siphoned from its vaults. According to data from DeBank, the breach involved a suspicious outflow of funds to a single wallet address: 0xdf3340a436c27655ba62f8281565c9925c3a5221. The stolen funds were then bridged from Arbitrum—a Layer 2 Ethereum scaling network—back to the Ethereum mainnet, a tactic often used by exploiters to hide or launder assets...

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