Top perps DEX GMX hacked for over $40m, $GMX token plunges

Investors face major losses as attackers exploit vulnerability in decentralized exchange, raising security concerns across the DeFi sector.

Key Takeaways

• GMX decentralized exchange suffered a reported security breach resulting in a $42 million loss.
• A re-entrancy vulnerability allowed the abnormal minting of GLP tokens during the exploit.

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One of the top decentralized perpetual exchanges, GMX, appears to have fallen victim to an exploit that drained more than $40 million and triggered a sudden decline in the price of its native token, as reported by blockchain security entity PeckShield.

According to data from DeBank first flagged by numerous X users, the suspected threat actor may have employed a re-entrancy exploit to abnormally mint GLP, the platform’s liquidity token. The incident is now under scrutiny.

The attacker’s wallet currently holds over $32 million worth of Arbitrum and around $9.5 million in Ethereum.

GMX has yet to issue an official statement. However, data shows that the team sent an on-chain message to the attacker, offering a 10% white-hat bounty in exchange for the return of the stolen funds.

The GMX token plunged from $14 to $12 following the incident, per CoinGecko data.

This is a developing story. Please come back for further updates.

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