GMX Platform Hit by Cyber Attack: Millions Drained in DeFi Breach
DeFi's dark underbelly exposed again as GMX becomes latest crypto protocol to suffer a major security exploit.
Attackers bypassed protocol safeguards to siphon funds—raising fresh concerns about smart contract vulnerabilities.
The breach comes just as GMX was gaining traction with yield-hungry degens. Timing couldn't be worse for the protocol's TVL.
Another day, another 'unhackable' DeFi protocol learns the hard way that blockchain immutability works both ways. Maybe save some of those stolen funds for the inevitable audit bills?
$109,552 maintained its value at $109,548.
ContentsSignificant Security BreachUnfolding Consequences
Significant Security Breach
The accusations led by BWE indicate a hefty $40 million withdrawal from the GMX protocol. The dissemination of this news rapidly triggered a 20% decline in the GMX Coin’s price. Earlier valued at approximately $14.5, the price dipped below $12, and as of now, it resides at around $12.5. If this selling trend continues, the market could experience further losses, potentially testing the support level of $9.7, which was reached during a price adjustment in April.
Unfolding Consequences
The GMX team has yet to release an official statement, and roughly 40 minutes ago, the stolen assets began conversion into DAI. Astonishingly, 15 minutes before the hacking activity, GMX’s official account had posted content highlighting the protocol’s performance metrics.
Dominating the DeFi scene in 2021, the perpetual platform GMX thrived on the HYPE due to limited alternatives. The aftermath of this hacking incident remains to be witnessed. There’s uncertainty about whether a compensation program will be initiated for the $40 million loss, although the protocol boasts a 7-day fee revenue of $1 million. To date, GMX has generated $435 million in fee revenue with a total locked value of $444 million in the protocol.
