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GMX Halts Trading After $40 Million Crypto Pool Drained in Attack

2025-07-10 08:53:29

GMX Halts Trading After $40 Million Crypto Pool Drained in Attack

Main Idea

GMX V1 halted trading after a $40 million exploit drained its asset pool due to a re-entrancy flaw, impacting GLP holders and prompting security concerns.

Key Points

1. GMX V1 suspended trading following a $40 million exploit that drained its asset pool, affecting GLP holders.

2. The attacker exploited a re-entrancy flaw to repeatedly mint GLP tokens using the same funds.

3. Losses included approximately $10 million in Bitcoin, $8.5 million in Ethereum, and $1 million in USDT.

4. The attacker's wallet was funded via Tornado Cash, likely to obscure the transaction trail.

5. GMX disabled V1 trading on Arbitrum and Avalanche, along with GLP minting and leverage trading.

Description

GMX's first-generation decentralized exchange (DEX) was forced to suspend trading on July 9 after it suffered a security breach that resulted in the loss of around $40 million worth of cryptocurrency.

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Tags:
exploits